Is it correct that a married couple who are the only shareholders in an S-Corp can "share" s/h loans made to the corporation if the loan is in the name of only the wife for determining at-risk? Example: Wife has a $30,000 loan with the bank in her name, she then loans the proceeds to the s-corp. For purposes of calculating at-risk, can $15,000 (1/2) of the loan be applied to her husband's at-risk? If this is the case, I need some guidance as to where I can get something in print to bear this out.
-
-
My Opinion
Lower Greater Memphis:
In my opinion, no. Simply because a corporation is a separate entity from "people", who can obscure titles and ownership by virtue of marriage. If the S corp has shares issued in both names, each should be treated as a separate shareholder in all respects.
The $30K loan from the wife is a $30K loan from the wife and not anything beyond the narrow confines of the definition.
My opinion only. Maybe others will post as well. Nice to have you join our board, LowerGM.
Comment