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    #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.
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    #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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