Question

My gym went bankrupt. They owe me over $4,000. Can I deduct the loss?

I had pre-paid $4,000 in membership fees and personal training fees. Then they closed with the pandemic March 2020. Then declared bankruptcy.

No, you cannot deduct this loss on your tax return.

Please see the BBB Tip: What to do when a business closes for good for ideas on how to possible recover some of your money.

**Say "Thanks" by clicking the thumb icon in a post**Mark the post that answers your question by clicking on "Mark as Best Answer"

Employee

It might be a non-business bad debt.

2 replies