Brutus is a 40% shareholder in a C corporation, Wiggles, Inc. He invested $10 million...
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Accounting
Brutus is a 40% shareholder in a C corporation, Wiggles, Inc.
He invested $10 million in the corporation 15 years ago. Brutus loans $30 million to the corporation in January 2015. He is the CEO of the companv and is paid a salarv of $3 million each year. So far, the corporation has paid off $5 million of the debt. In 2023, Brutus accepts the fact that he will not be paid back for the remainder of the loan as the company is bankrupt and has no remaining assets. Brutus is hopefully he can take a deduction on his tax return this year for the amount of the loan that is worthless. He really hopes it will not be a capita loss as he has no capital gains.
Discuss of relevant Revenue Rulings!!!
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