Solution-Describe whether john is entitled to a bad debt

Describe whether john is entitled to a bad debt deduction

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During 2011, John was the chief executive officer and a shareholder of Maze, Inc. He owned 60% of the outstanding stock of Maze. In 2008, John and Maze, as co-borrowers, obtained a $100,000 loan from United National Bank. This loan was secured by John’s personal residence. Though Maze was listed as a co-borrower, John repaid the loan in full in 2011. On Maze’s Form 1120 tax returns, no loans from shareholders were reported. Discuss whether John is entitled to a bad debt deduction for the amount of the payment on the loan

Reference no: EM13130556

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Describe whether john is entitled to a bad debt deduction

Reference no: EM13130556

Reference no: EM13130556

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