Imputed Interest

[S T]

Can someone provide me with a calculator to arrive at imputed interest on a S Corp loan from shareholder with uneven (not regular) payments.

Thanks,

Sandy

[Maria]

No Need for Interest?

Hello,

As I recall, we usually leave it. Since the S corp. records interest expense and the shareholder reports interest income, it is pretty much a wash. But senior members here will surely have more precise answers.

Maria

[Corduroy Frog]

Excel

Sandy, do you have Excel?

I have a spreadsheet with four variables: 1)Principle 2)Interest Rate 3)Payments
4)Length. Only length has to be changed with inserts/deletes, the other three are
simply input.

Let me know and I'll send it to you as an attachment. Has your e-mail changed over the last 2 years? If not, I still have it.

[S T]

Email is the same

Frog,

Yes, I have Excel, That would be great if you could either private email me, or if you have my email address from prior , still the same.

Thanks so much!

Sandy

[Uncle Sam]

Imputed Interest

Sandy - if you go to http://www.accountantsworld.com, scroll down, and on the left you'll find "Tools of the Trade" - there will be Financial Calculations.

[Lion]

Spreadsheet

Cord, would you please email me a copy, also? Thank you very much.

RitaLewis@DollarsSense.biz

[Gene V]

Sandy, I thought that you use Tax Tools, if you do, they have a irregular loan calculator.

[peggysioux]

Excel Spread Sheet

Frog, could you also e-mail a copy to my address as well at "sherman1@citlink.net"?

Much appreciated.

[Lion]

Tax Tools

There seems to be more than one product on the Tax Tools website. Do any of you users have any insight into what their usefulness is? What do you use, and for what purposes?

[BOB W]

Shareholder Loans

I don't think that imputed interest is calculated when it comes to shareholder loans to his/her corporation.

I believe it is a straight interest calculation on the loaned amount, no reduction of the principle at this calculation point.

Amount of loan X % X period of time. This interest is deducted as an expense to the corporation and credited to accrued interest payable to shareholder. The K-1 should show Interest income to the shareholder.

Any future payments to the shareholder to reduce the loan should first be debited to this accrued interest payable and the balance to reduce "Loan from Officer".

Since the Officer was charged this interest on his personal tax return, all of any payment should not reduce the loan in full by the amout of the repayment. I like this way because his basis in the corporation remains high for other reasons.

I would like to hear any negatives on this thinking.............

[veritas]

One problem

It's income to the shareholder as it accrues. It is not a deduction on the Corporation until paid.

[Bird Legs]

Lion-Tax Tools

I use the Small Business Tax Tools -Tax Corresponder & Tax Tools. You just have to look at them and see what all calculators they have included. Could not get through the year without them.
Go to: www.taxtools.com or call 800-343-1157

[BOB W]

It's income to the shareholder as it accrues. It is not a deduction on the Corporation until paid.

That Is interesting, as many believe the corp deduction happens at the same time interest is accrued, but it makes complete sense ( deduction only when paid). Thanks.... is that the same for accrual taxpayers.

I'm confused why the thread is looking at imputed interest computation for this type of officer loan??????

Imputed interest happens when there is no or below interest stated on loan.

[veritas]

Cash basis or accrual

Transactions between related parties is cash basis as far as taking a deduction on the business return.

[KJ Judd]

TValue software is excellent. It can handle anything including irregular payments, balloon payments, etc. It lists for around $130-149.