TaxGuyBill
Level 15
09-06-2021
03:19 PM
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Money taken out of the corporation for persona use is either (1) loans, (2) wages/compensation, or (3) distributions.
If there is not documentation that it is a loan, it is not a loan.
Was "reasonable compensation" paid? If not, it is wages and payroll returns may need to be filed or amended. If "reasonable compensation" was paid, then it would probably be distributions.