Angela1111
Level 2
02-27-2021
01:02 PM
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Hi! I have an S-Corp final year return and the owner was unable to get his shareholder loan repaid to himself. Since it's business bad debt, I don't want to enter it on Form 8949. Help! Thanks..
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qbteachmt
Level 15
02-27-2021
01:08 PM
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"Since it's business bad debt, I don't want to enter it on Form 8949"
Are you sure?
Have you got a properly created and signed note payable? Have there been loan payments and/or imputed interest all this time? What happened to the assets in the entity? Are there other shareholders involved?
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IRonMaN
Level 15
02-27-2021
01:19 PM
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So if you are planning on taking a deduction on the corporate side of things, are you planning on picking up debt forgiveness income on his personal side of the transaction?
Slava Ukraini!
