Scorp equity account

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  • JCH
    Senior Member
    • Jan 2007
    • 207
    #1

    Scorp equity account

    My client deposited her 1040 refund from 2007 into her Scorp bank account by mistake. I do a lot of partnerships, but not many s corps. I know on a partnership I'd treat this as a capital account investment, but wonder about the treatment for an Scorp.

    Is it a shareholder loan or an additional capital account contribution? Any guidance out there helps. Thanks.
    Tags: None
    • dsi
      Senior Member
      • Dec 2005
      • 705
      #2
      It's either:
      1. A loan
      2. A purchase of additional shares
      3. A reduction (payback) of distributions

      These are the choices I follow. Others may suggest APIC.
      Dave, EA

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