apparently no amount was put in as permanent captal to fund the corportion for at least one operating cycle. that portion the IRS may deem to be stock in which case it's a capital loss - short-term or long-term dependiing on date money was put in and date corporation was dissolved. apparently the interest was never paid and you never reported it as income. I would think the IRS wpould disallow any interest deduction (and you wouldn't have any interest income) for the portion it deems permanent capital. Any portion not demed permanent capital if more tha $10K would be subject to section 7872 imputed interest rules that would require you to report the interest income even if you didn't receive it. Then there is the issue of the corporation of not repaying the debt. the IRS has issued several conflicting pronouncements as to wether that is forgiveness of debt generating income for the corporation. Your situation is complex and I don't think anyone in this forum with the limited info can give you definitive answers on the issues. You may want to seek the advice of an outside tax pro becuase they can look over the operations of the Corp and see what you did? they can ask questions they deem eelevant to give you the best advice they can.
