Mamasteph2013
Level 2
04-14-2023
01:47 PM
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I have a client who is a shareholder in an s corp. She loaned the S corp money and has received interest. This interest is included in interest expense on the P&L. The only place that I could find to enter the self-charged interest on the k-1 was on screen 36. This entry places this amount in **bleep**. What am I doing wrong? Which form is correct? I tried entering self-charged interest in box 10 of Schedule K, but when I put it there, it divides it between all shareholders and messes up the M-2. This company has not elected to avoid the rules for self-charged interest. Please help.
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