Home – New Forums Money matters Personal Loan to a Company I was a Director of

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  • #995003
    Louiseg1969
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    Hi there,

    I’m unsure if I’m able to claim a personal tax loss on money I personally loaned to the Company I was a Director of.

    Facts are:

    I personally loaned money to the Pty. Ltd. company I was a Director of between 2011 and 2013.

    I was a Director at the times I loaned the money. I then resigned as a Director in 2013.

    The loan agreements are in writing including a signed contact between me personally and the company.

    No ‘invoices’ were sent as I didn’t lend the money in my ABN’s/Business’s name.

    Attempts to recover the debts ended in a VIC Magistrate’s Court mediation session and settlement was reached a few days ago.

    My personal loss is close to $20,000.

    Any thoughts or advice would be welcomed.

    Sincerely,
    L

    #1199515
    Paul – FS Concierge
    Keymaster
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    Hi And Welcome to the Forums Louiseg1969. It is great to have you!

    I am sorry to hear that things have not worked out for you in the business. It must have been very stressful going through a court process.

    Hopefully some helpful members will be along soon with some on-point advice.

    Cheers

    #1199516
    Taxopia
    Participant
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    Hi Louise

    You may be able to claim a capital loss depending on the information you have and whether it would meet the substantiation requirements. That would include access to the company financial statements and documentation showing the loss and that it was non recoverable. In some cases the trigger point for claiming the capital loss on shares or loans is when the liquidator makes a formal decision that they have no value. More here for you

    https://www.ato.gov.au/General/Capital-gains-tax/In-detail/Shares,-units-and-similar-investments/Shares-and-other-securities-that-become-worthless/

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