jeff5
New Member

Business & farm

Also as a side note, just so you know I'm trying to do this correctly and legally; I did catch that I'll need to file/include extra items with form 8949 when I file the S-corp taxes. I'll need to attach a statement to the return that contains the following as described by IRS publication 550:  
• A description of the debt, including the amount, and the date it became due;
• The name of the debtor, and any business or family relationship between you and the debtor;
• The efforts you made to collect the debt; and
• Why you decided the debt was worthless. For example, you could show that the borrower has declared bankruptcy, or that legal action to collect would probably not result in payment of any part of the debt.