Hello, I’ve searched for an answer with no luck so am hoping to find the answer here. In late 2006 I “loaned” my uncle a chunk of money so he could take it along with his and another family member’s to invest in a real estate deal. It was a very informal business transaction (not recommended). I wasn’t involved in business decisions. As you know things got rough shortly after that. They hung onto the property hoping it would recover. Needless to say finally there was an offer this winter and we decided to take it, with all of us sharing in the loss. There was a deposit into my bank account upon closing by the title company. I’m figuring I need to file a form with the IRS to show what that deposit was and also I want to do that so they can see there was a loss to help substantiate the max $3k/year I’ll be writing off over several years. What form would that be? Do I need to have my uncle file it with the IRS since he was dealing with the business transactions?
