I don't do many regular C-Corps. This is a new client. They are closing the corp in 2013. After this year (2012) there will be 100,000.00 remaining due on a loan from the corp to the shareholder. Can he change that to a Dividend paid to him in 2013 so the loan will be considered paid back?
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Won't the result be the same? It will be taxed as a qualified dividend or capital gain. In both cases a 20% Fed tax in 2013.
It may have been better to have treated the loan as a distribution in 2012 and save 5%.Comment
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