360 Tax Martin
Level 3
09-29-2020
09:59 AM
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s-corporation A sells his business to corp B, however corp B is unable to pay Corp A in one lump sum and structures a loan with Corp A for 3 million dollars at an interest rate of 8% to payoff the balance. The loan is considered recourse and Corp B shareholders are prsnly liable for repayment.
Is the interest from this loan considered a passive activity interest income?
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