Terry D EA Posted January 21, 2008 Report Share Posted January 21, 2008 Good morning to all! When a shareholder of an S-Corp makes a loan to the S-Corp and receives payment back plus interest, does the face value of the original note to the S-Corp effect the shareholder basis? My take is the loan does not effect the shareholder basis as it is not an investment but exactly what it is a "loan" that is repaid. Any guidance is appreciated. Thanks, Terry D. Quote Link to comment Share on other sites More sharing options...
RoyDaleOne Posted January 21, 2008 Report Share Posted January 21, 2008 May I suggest you use the shareholder basis worksheet in the program. It is under K-1. Print out a blank if you want. The loans actually don't effect the shareholder's stock basis, however, the loans may be taken into account to determine how much loss may be deducted. Quote Link to comment Share on other sites More sharing options...
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