I let someone money, and they gave me gems as collateral. They defaulted on the loan and I finally sold all the gems. I have loss.
I am using H&R Block Software, but they are vague on how to enter it, other than saying it goes on Schedule D as "ordinary".
I tried entering it as I would a stock sale and chose "ordinary" as the type. Does that work. Is there anything more to do?
Thanks.
Okay, I read through IRS 453. It says to enter the bad bet on 8949 and attach a statement. H&RBlock and Turbotax don't seem to have any way to attach a statement. I can print my return and mail it. Or I can ignore the statement, and provide it afterwards if they ask for it.
Yes, I was lazy not to have read IRS 453 before asking the first question; but I need advice here.
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