scorp sharholder buyout

[TAX4US]

I think I saw this b4 but can't find. S corp(always been one). Shareholder#1 borrows money personally to buy out shareholder #2. Does interest paid on loan got to 4952 or sch-e as an additional adjustment being an ofsett to the k-1 profit commming from S-corp. BTW s-corp has no debt at all. Shareholder did not loan to S-corp, he just bought out #2 to gain a larger interest in the S-corp.

[geekgirldany]

It goes to Schedule E, non passive loss, and I put "business interest - corporation name".
Here is a link that explains it a little more:

http://purkpc.blogspot.com/2013/07/deducting-interest-on-debt-used-to-buy.html