Questions

I am closing the C-corp and want to be able to deduct the losses on my personal tax return. Can personal loan be deducted? Do I need to change the loan type to convertible debt and/or issue preferred shares.

There are a couple of moving pieces here which would require some additional information. If you are winding down a C corporation, you are eligible to write off any losses as capital losses. Calculating the capital loss will depend upon what your basis is in the stock, and what assets (if any) you are able to redeem from the corporation in a final distribution. You are eligible to offset capital losses against other capital gains.


Answered 5 years ago

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