schedule C incorporating

Technical topics regarding tax preparation.
#1
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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
 

#2
CathysTaxes  
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I would do it your way. What's the guy's capital account like?
Cathy
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#3
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C Corp or S Corp? Sole owner or other owners involved?

That might really affect the pros and cons.
 

#4
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s corp sole owner thanks
 

#5
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Additional paid in capital for sure.

viewtopic.php?f=8&t=19373
 

#6
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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.
 

#7
JR1  
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Besides that, 351 requires all equity unless you're in that one circuit that permits debt on inc'ing.
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#8
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thank you all very much
 


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