Where do you recommend putting personal expenses on 1120S. If I put as distributions taxpayer will have distributions in excess of basis and pay tax on it. If I put into shareholder loan account amount will be 80k ish. If I put nondeductible expenses it will not reduce basis and be eliminated. I am thinking of using the latter option and was wondering if any one had an opinion? I was always under the assumption that the proper place for them was as distributions and nondeductible expenses was reserved for 1/2 meals and fines and other business related costs that were not deductible.