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Whether or not it relates to a business transaction, a bad debt can be deducted in the year in which it becomes uncollectible. If a business debt is partially uncollectible, a portion may be charged off. A nonbusiness bad debt is treated in the same way as a short-term capital loss. A debt that arises from the performance of services or the selling of goods by a cash-basis taxpayer may not be deducted if the income from the services or the profit from the sale has not previously been reported as income. However, a bad debt that arises from the lending of money is deductible, subject to the above-mentioned limitation on a nonbusiness bad debt.