I really do need help with this guys. I hope I can get some input.
S-Corp closed down. Loan To Shareholder was $140,000 rounded up. But shareholder assumed payroll, sales tax, and other liabilities of over $300,000. Does the assumption of the liabilities clear out the Loan To Shareholder? Seems as though I have read that assuming the liabilities does not increase shareholder basis which was zero.
Thank you for any help with this. I've done alot of research but still can't come to a good answer for myself on this.
S-Corp closed down. Loan To Shareholder was $140,000 rounded up. But shareholder assumed payroll, sales tax, and other liabilities of over $300,000. Does the assumption of the liabilities clear out the Loan To Shareholder? Seems as though I have read that assuming the liabilities does not increase shareholder basis which was zero.
Thank you for any help with this. I've done alot of research but still can't come to a good answer for myself on this.
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