Bad Loan Write Off

Nance · **Joined:** Tue Jan 27, 2009 1:27 pm **Posts:** 6

A friend of mine has a church. He sold property owned by the church on a loan. The buyer has given him back the property because he is going bankrupt. Can the church write off the interest and penalties that built up on this loan? He also, has the same situation for some personal property he sold. Can he write off the penalties and interest personnally. He is being told by his accountant that because he got the property back he can't write off the built up interest and penalties for either his personal property or for the church property.

Ken · **Joined:** Wed Aug 17, 2005 4:31 pm **Posts:** 341

I am not sure of all of the ins and outs. I do know that if the titles and tax forms are not in his name, he would have a hard time presenting it to the IRS. The IRS looks at who the items are titled to, and who the Tax forms are sent to.

irsfixer · **Posted:** Wed Feb 04, 2009 8:31 am

Nance wrote:

A friend of mine has a church. He sold property owned by the church on a loan. The buyer has given him back the property because he is going bankrupt. Can the church write off the interest and penalties that built up on this loan? He also, has the same situation for some personal property he sold. Can he write off the penalties and interest personnally. He is being told by his accountant that because he got the property back he can't write off the built up interest and penalties for either his personal property or for the church property.

Write it off against what? Churches do not pay taxes.

Chris2289 · **Joined:** Wed Apr 08, 2009 7:53 am **Posts:** 29

CHurches don't pay taxes? are there any other types of organizations that don't pay taxes?

jamesparker · **Joined:** Wed Oct 28, 2009 3:24 am **Posts:** 353

HI

If you not pay tax the amount of tax will increase day by day.

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Bad Loan Write Off

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