I have similar situation but with a C Corp. I incorporated a C corp in 2014 that we closed in 2020 due to the pandemic. There were 13 investors in the company plus myself. Like many small businesses, I would transfer money into the business account when the well started to run dry, and our accountants would log it as a loan on the books. In the previous response, it would seem that I would record the total of all of those injections as the cost basis for my stock. Is that correct?
Also, the two business credit cards were of course personally guaranteed by me, so I'm now on the hook for those after the death of the company. The amount is substantial. I've read some posts that I cannot deduct the interest, but I find that hard to believe, since all charges were documented for business use. I do have some 1099-NEC income. Perhaps I could run the credit card interest through that business activity, starting with the closure date of the company? Any help would be appreciated.
