I was speaking to a friend about this over the weekend and he mentioned something that made me want to learn more. I own a business that I have lent my personal cash to. Unfortunately the business is not going to continue and I will need to shut it down. The business still has a loan to repay back to me, which is recorded on its books. A few questions: 1. Can I write-off this debt to the company? 2. If I write-off this debt, can I claim it on my individual tax return as a loss and put it as a deduction to my personal tax return? 3. If I cant do any of the above, does it mean ive just lost my money that I lent to the business and its not recoverable? 4. Is there any other way to report the loss and offset / deduct the loss?