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I owned a Restaurant in Seattle, in 2015 I started to

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I am Ross I...

I am Ross I owned a Restaurant in Seattle, in 2015 I started to rebrand the restaurant and an employee of the corporation with loan documents lent the corporation $34 K to rebrand and asked the business also be listed for sale to protect his loan he then would be paid from the sale of the business . the business indeed had 4 buy sells and it went on into 2016 and the employee lent the business another $44 k all still within the asking price of the restaurant being sold. The landlord didn't approve any of the 4 buy sells and took on average of 4 months to answer if a buyer would qualify . eventually the lease ran out the landlord took the assets of the corporation so I forgave the debt with a 1099c . I would of been paid back from the sale of the corporation and that sale would of been corporate funds paying me back. I the lender had loan documents for both years and was awaiting a buy sell to occur . I had hopes of being hired on with a new owner of the corp. but the state in an audit feels its a personal loan not business. keep in mind I am also an employee of the corporation protecting my income.

Accountant's Assistant: The Accountant will know how to help. Is there anything else important you think the Accountant should know?

I am in a relationship with the other party but not married we file single as that was the law till 10/20/14 so 40 days prior to this loan to the corp I never could of filed as a partner in relationship as it was against the law. we are a same sex couple

Submitted: 6 months ago.Category: Tax
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Answered in 3 days by:
1/6/2018
Tax Professional: Patrick Mullis, Certified Public Accountant (CPA) replied 6 months ago
Patrick Mullis
Patrick Mullis, Certified Public Accountant (CPA)
Category: Tax
Satisfied Customers: 21
Experience: Capital Accounting Analyst / Financial Analyst at Norfolk Southern
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Hi Ross. Unfortunately if you forgave the debt with a 1099C I think you have little chance of getting your money back. Also if you lent the money to the individual instead of the business (especially without a contract) I think the personal loan determination will stand. Sorry I don't have better news. Hope this helps if so please rate me 5 stars. Thanks and good luck.

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