my business partner and I both made loans of equal amounts to our LLC to purchase computer equipment necessary for the business. For a while business was good and we were able to get a small portion of our loans repaid (with interest) however things got bad and eventually the company failed and the equipment became worthless.
Question: on my personal tax filing can I treat the unpaid portion of the loan as business related bad debt and claim it as ordinary losses? If so , do I have to claim the full amount the year the LLC got dissolved or I can carry part of it forward?
