A partner in S-1120 owned other business as well and borrowed money from this S-1120. His business failed. The S-1120 wants to file for bad debt. How does it affect the partner's K-1. What line does that bad debt show up in
Announcement
Collapse
No announcement yet.
bad debt and K-1
Collapse
X
-
Bad debt is a tough one... reason your not getting any responses is you left out WAY TO MANY details. Let start with the following and see if anyone wants to help...
Check written to shareholder or business?
What kind of business, 1120,1120S, 1065, sole prop?
Was there loan paperwork?
Was any payment made back?
Did they file any paper work with anyone trying to collect? Courts?
Is this 1120s in the business of giving loans?
How much debt are we talking about?
This would be a good start....
Chris
-
Originally posted by FullMoon View Postthe amount was loaned to the partners business with no paperwork.
this is a 1120S two partners
some payments were made back
no collections papers were filed. that partner's business went bankrupt
no this 1120S is not in the business of giving loans
$9,000
Thanks Chris,
Marge
No loan paperwork, no legal collections attempted? Was the loan in the bankruptcy that was filed?
I'm leaning towards note receivable shareholder, not bad debt.
Chris
Comment
Disclaimer
Collapse
This message board allows participants to freely exchange ideas and opinions on areas concerning taxes. The comments posted are the opinions of participants and not that of Tax Materials, Inc. We make no claim as to the accuracy of the information and will not be held liable for any damages caused by using such information. Tax Materials, Inc. reserves the right to delete or modify inappropriate postings.
Comment