I am completing Form 7203 and trying to determine if the loans provided by the Small Business Association create debt basis. Any help would be greatly appreciated!
Loan guarantees don't create basis for an S-corp shareholder.
Thank you for your quick response PhoebeRoberts! Does this answer still apply if the EIDL loan is in the company's name?
My name isn't Phoebe, but you still aren't getting any basis.
Yes.
Loans incurred by the Corp don't impact shareholder basis (even if guaranteed by the shareholder, as Phoebe pointed out).
