Find the best financial services for you at: SMARTFINANCESOLUTIONS.NET - My sister owes me money and filed bankruptcy. How do I file the loss on my taxes? - Use Schedule D. Usually this is used for reporting sales of stocks and bonds and other investments, but it is also used as a catch-all for gains and losses that don't fit anywhere else. Use the section for short-term transactions regardless of the terms of the loan. In column a enter your sister's name and statement attached. Enter amount of loss in column f. In the statement -