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Another Basis Question

Technical topics regarding tax preparation.
#1
Bean  
Posts:
7
Joined:
12-Dec-2016 6:36pm
Location:
Ohio
Small s corp, only 1 shareholder. They "lend" the s corp money when short and then take it back out within a few months.
For purposes of the IRS this is not a bona fide loan. I have talked to them regarding the loan rules etc to no avail. I have also discussed using the corp checking account like their personal bank account. Anyway at year end they had loaned the cop 2,000 and had not been paid back yet. How would you show on the s corp balance sheet. I haave been showing it as APIC which is not technically corrrect and then reversing that entry when paid back. Any other ideas? I do not give the shareholder credit for this on the basis worksheet either. Any other ideas on this?

Thank you for your input. It is great to get feedback from other tax pros!!
 

#2
Noobie  
Posts:
937
Joined:
22-Apr-2014 1:35pm
Location:
Jacksonville, FL
Put it in a due to/from account classified as a short term liability.
 


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