scorp sharholder buyout

Collapse
X
 
  • Time
  • Show
Clear All
new posts
  • TAX4US
    Senior Member
    • Mar 2010
    • 554

    #1

    scorp sharholder buyout

    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
    Senior Member
    • Jul 2005
    • 2359

    #2
    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:
    Blogger is a blog publishing tool from Google for easily sharing your thoughts with the world. Blogger makes it simple to post text, photos and video onto your personal or team blog.

    Comment

    Working...