TaxGuyBill
Level 15
02-12-2024
04:08 PM
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@Avs19 wrote:
Can the materials and interest she racked up on her personal loans somehow be treated as capital or a loan?
Personal money spent for corporate expenses is a capital contribution, a loan, or an unreimbursed employee expense. You'll need to ask more questions to the taxpayer to determine which applies.
If it is a capital contribution, look at the Instructions for line 28 of Schedule E.