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Loan to a LLC that was disolved

How do I record a loan I made to a LLC that was dissolved with no money or assets to pay back the loan

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Loan to a LLC that was disolved

Generally, there are two kinds of bad debts.  Business and non-business.  Here is a link to Topic No. 453, Bad Debt Deduction on the IRS website.  I suggest looking at that topic and the related links.  Your question lacks some specifics to make a determination as to whether this would be a business or non-business bad debt.  My first impression is that you are/were an LLC member that loaned the LLC money.  Depending on further relationship, duties, etc.,etc., I would also have an initial impression this would be a nonbusiness bad debt, which would be deductible as a short term capital loss.

 

But, please review the topic and related links for further and more detailed information that will fit your circumstances.

 

https://www.irs.gov/taxtopics/tc453

 

 

**Disclaimer: Effort has been made to offer correct information; but due to the discussion forum limitations, the poster disclaims any legal responsibility for the accuracy of the poster's response**
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