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I own 100% of a C Corporation that has loaned to me $1,000,000.00 over the last 20 years. What are the options to eliminate this loan to me on the books?

jastaxes47
Level 1
 
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TaxGuyBill
Level 15

The most obvious answer is to pay back the loan.

View solution in original post

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8 Replies 8
TaxGuyBill
Level 15

The most obvious answer is to pay back the loan.

View solution in original post

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abctax55
Level 15

Sniff, sniff ...homework?

If not, if there was $ 1M to loan,  then there's enough cash to pay for a consult with an attorney & a paid tax pro to evaluate all the options.

(I wanna be a member of the pot stirring club too)
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IRonMaN
Level 15

Congratulations, you just won a $1,000,000 paycheck since you evidently had been taking a paycheck over the last 20 years without paying taxes on it ------------------ at least that's the way the IRS will look at it.


Pot Stirrer Gold Medalist - Rio de Janeiro Games
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mojocpa
Level 7

or they could be classed as Dividends 

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abctax55
Level 15
Even worse...double taxation !
Altho penalties on late filed payroll for 20 years would sure add up.
(I wanna be a member of the pot stirring club too)
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abctax55
Level 15
Unless maybe he's already taken LARGE salaries in those years?
(I wanna be a member of the pot stirring club too)
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mojocpa
Level 7
The OP wanted options, not saying mine was a good one.
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abctax55
Level 15
I'm not sure there ARE any good ones...
(I wanna be a member of the pot stirring club too)
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