Harold lent $200,000 to a close personal friend's corporation to help the friend's corporation avoid overdrawing the corporation's checking account.The corporation was supposed to repay the $200,000 within a month.Instead,the corporation and the friend each declared bankruptcy and Harold will never recover any of the $200,000.What are the tax implications of these events for Harold?

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The Answer of Harold lent $200,000 to a close personal friend's corporation to help the friend's corporation avoid overdrawing the corporation's checking account.The corporation was supposed to repay the $200,000 within a month.Instead,the corporation and the friend each declared bankruptcy and Harold will never recover any of the $200,000.What are the tax implications of these events for Harold?

Harold Lent $200,000 to a Close Personal Friend's Corporation to Help