How to treat nonbusiness bad debts


Response to the following :

Nonbusiness bad debts are always treated as short-term capital losses ?

Depreciation recapture is always taxed as ordinary income ?

Only the excess of a taxpayer's net Section 1231 gain over the taxpayer's nonrecaptured Section 1231 losses is treated as long-term capital gain in the netting process.

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Taxation: How to treat nonbusiness bad debts
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