This question was submitted in response to Putting Personal Money Into A Business: A Step-By-Step Guide for SMB Owners…
I am not a CPA and I suggest you reach out to your own accountant or CPA to find out for sure whether or not this applies to your situation. I will say, however, that loaning an entity money isn’t a tax deduction by itself. There are tax deductions for bad debts that businesses or individuals don’t make you whole on, but not the loan itself. If you loan money to a business you own then I don’t think it would qualify for the bad debt deduction unless that business goes bankrupt. Again, you should reach out to your own CPA to know for sure what applies to your own personal situation. Good luck!