S Corp Loan Basis

[Golden Rocket]

I have learned recently that the IRS has influenced pending legislation to place a ceiling of
$10,000 on loan basis stemming from undocumented and unofficial loans from shareholders.

This means unless a loan document between the shareholder and corporation is drawn up, the deductibility of a shareholder's loss beyond stock basis would be limited to $10,000.

Anyone aware of this, and know particulars??

[BOB W]

I have learned recently that the IRS has influenced pending legislation to place a ceiling of
$10,000 on loan basis stemming from undocumented and unofficial loans from shareholders.

This means unless a loan document between the shareholder and corporation is drawn up, the deductibility of a shareholder's loss beyond stock basis would be limited to $10,000.

Anyone aware of this, and know particulars??

The $10,000 officer loans limit has been in place for many years as it relates to not having to compute interest to shareholder. Anything over $10,000 interest was required. So it appears that they are now going to use that $10,000 limit for other usefull purposes ???????????