Several years ago, I made a loan through my single member LLC to a company to buy a house. The promissory note was secured by a deed of trust, but I was in 2nd position (never again). The house sold last year, but the borrower defaulted on the note since the house sold for less than what they paid for it. Since this was a business transaction, how do I take the full amount off my taxes and how do I report it in TurboTax?
