YANKA Posted March 30, 2008 Report Share Posted March 30, 2008 Can anyone help me on the following: An S Corp. borrowed 50,000 to start the operation on march of 07 , in June the repayment started( principal + interest) how or where do I report the loan, I know I can deduct the interest, but I am a little confuse with the loan money and the repayment of the principal Thanks for the help Quote Link to comment Share on other sites More sharing options...
William Posted March 30, 2008 Report Share Posted March 30, 2008 Can anyone help me on the following: An S Corp. borrowed 50,000 to start the operation on march of 07 , in June the repayment started( principal + interest) how or where do I report the loan, I know I can deduct the interest, but I am a little confuse with the loan money and the repayment of the principal Thanks for the help The loan is shown on the balance sheet - page 4 and the principal is used to reduce the original loan amount. You have to be careful about maintaing a positive basis for the shareholders. Quote Link to comment Share on other sites More sharing options...
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