Jump to content
ATX Community
Sign in to follow this  
cpawr

LLC loan to the llc not repaid

Recommended Posts

LLC member made true loan to the LLC with amortization schedule requiring monthly interest and principal payments from LLC to the loaning member. After about a year of payments being made, the business went bad and the LLC was unable to make any more payments to the loaning member. The business will basically be shut down without any cash flow for the loan or any other distributions. I’m not sure how to handle the bad debt the loaning member has incurred with the remaining loan balance. Would it be a business or non-business bad debt on their personal return?  Also on the LLC tax return would debt forgiveness come in to play with income being recorded. 
many guidance would be appreciated. 
 

Share this post


Link to post
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.

Guest
Reply to this topic...

×   Pasted as rich text.   Restore formatting

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

Loading...
Sign in to follow this  

  • Recently Browsing   0 members

    No registered users viewing this page.

×
×
  • Create New...