Technical topics regarding tax preparation.
21-Sep-2021 10:20am
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A schedule C client is incorporating. Has around 2 million in inventory. Was going to record the inventory as contributed capital; client wants to record it as a loan but then there will be interest problems. Any suggestions please
21-Sep-2021 10:40am
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I would do it your way. What's the guy's capital account like?
Cathy
CathysTaxes
21-Sep-2021 10:55am
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C Corp or S Corp? Sole owner or other owners involved?
That might really affect the pros and cons.
21-Sep-2021 11:12am
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21-Sep-2021 11:19am
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Additional paid in capital for sure.
viewtopic.php?f=8&t=19373
21-Sep-2021 11:23am
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Furthermore, wouldn't a note indicate a sale of the inventory to the S Corp (as opposed to a contribution)? Which is probably not optimal.
21-Sep-2021 1:36pm
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Besides that, 351 requires all equity unless you're in that one circuit that permits debt on inc'ing.
22-Sep-2021 7:41pm
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