Please clarify this for me - you have entered the amount of the loan into the S-corp and zeroed out all of the assets against the loan balance. The S-corp still owes you money and you're not sure how to handle that in TurboTax. Is that correct?
If that is the case then the S-corp should just be shut down showing that it is the final return and the balance sheet should show the outstanding debt. It should close as insolvent.
On your personal tax return you should enter the loss of the investment as though it were a sale of stock in the S-corp. The basis should be the remaining amount that you are owed by the S-corp, the sale date should be the final date that the S-corp was in operation and the sale price should be zero.
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