Loaning money to multi member llc I’m in

[Derek Mendez]

Hi

Had a tax question I’m trying to wrap around.

If I loaned money, such as cash at property closings or my credit card for llc to use. Besides reporting any earned interest I get; if the llc goes under can I write off those loans to llc(that I’m part of as multi member llc)?

[Basit Siddiqi]

@Derek Mendez

If you provide a loan and don't expect to receive it back, you have a "bad debt". You have to determine if it is a business bad debt or a non-business bad debt. 

Normally the loss is taken in the year you find out that that the debt becomes "bad".

Your situation is unique as you are also a member of the LLC you are lending to. Do you have loan documents set up? What is to say the amounts given aren't capital contributions?