On August 31st 2016, I sold my business. It was a DBA S-Corp. At the advise of my lawyer, I kept the S- Corp and dissolved the DBA. In March of 2017, I obtained a personal loan for $34,000 that I deposited into the S-corp bank account. I immediately loaned the $30,000 from the S-Corp to my son and his partners LLC so they could buy inventory for their liquidation business. I had loan papers drawn up by my lawyer and signed by all the partners. I was paid for about 2 months,when the business with South very quickly. There is no way for me to recover any of the money owed to me. I would like to know if this is a business bad debt or a non business bad debt. If it is a nonbusiness bad debt, can it pass through to Sch A miscellaneous expense or to Sch D short term capital loss. Prior to the time I received the loan,I had zero basis in the S-Corp
The loss is about $29,000

Thank You