Christine384
Level 1
03-12-2020
02:10 PM
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When a business closes but shareholder still owes bank for business loan, can interest on this loan be taken personally? what about principal?
qbteachmt
Level 15
03-12-2020
02:14 PM
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What about the principal: Principal repayment is never part of tax reporting. It is debt service.
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"Level Up" is a gaming function, not a real life function.
"Level Up" is a gaming function, not a real life function.
Christine384
Level 1
03-12-2020
02:21 PM
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I should have asked if there is any at risk loss on principal.
rbynaker
Level 13
03-12-2020
08:26 PM
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Making a principal payment on behalf of the S-Corp will increase the shareholder's basis in the S-Corp which, in turn, might free up some losses previously suspended due to lack of basis.
qbteachmt
Level 15
03-13-2020
11:15 AM
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We don't know if there are multiple shareholders, and if the business closed, is the S Corp being terminated? That means assets and liabilities are being assumed by someone or what is happening?
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"Level Up" is a gaming function, not a real life function.
"Level Up" is a gaming function, not a real life function.
