We are an LLC corp elected as a C corp. We lent a principal of the company about 20K last year. The party has been removed as a principle. Is there a way to retire the loan off our books even though our business is not in the lending industry and does not exactly fit under 6050P to do the 1099-C? We sued them and got nowhere. Just a waste of our money. We decided that if a tax liability could go to them for the full amount of the loan, then that would be justice enough if we can write the loan off our books. Is there anything we can do because they are just getting away with basically stealing right now with no payment back to us and unwillingness to make any effort whatsoever to acknowledge the loan.
Any help would be appreciated.
Thank you
