Thanks for your answer. I did some more research and I think I can still proceed in the 'general' manner I planned and categorize the loan to the S-corp as a "Non-Business Debt" (IRS publication 550) and take a short term capital loss using form 8949 for the taxes with the S-corp. I don't believe I'll have to categorize this as a distribution from the S-corp to shareholders. Note: There is a reason I want it to flow and be any type of expense with the S-corp....that company made some good money in 2016! I need to make sure my 'reasonable salary' is truly reasonable when compared to my net profits. That's a different topic in itself.
