Maybe I'm missing something, but why would a repayment of a shareholder loan be taxable?

@TaxGuyBill 

If the loan has been used a *basis* to allow deducting prior losses, the subsequent repayment can become a taxable transaction.

@AlexBeaudry 

All entries dealing with this are in Screen 20.2, under *Sections* - Basis Limitations (7203).   You may have to do some overriding (Stock basis at beginning, loan balance at beginning, etc )if you are sure that the repayment is taxable.  

@abctax55   Thank you, I didn't think about claiming losses due to the Debt Basis.

Thank you for the reply.  I had tried adding to screen 33 as an override to capital gains and although it will export it correctly to the tax return - it doesn't change the 7203 to reflect that it's taxable.

My other issue with Repayment of Loan is that the basis on the balance sheet (R/E plus income plus s/h loan) won't tie out to the 7203 basis as the gain increases the basis on the 7203 so it's higher than the balance sheet.  We usually keep a sheet that has the cumulative gain so we know why there is a difference, but I'm not sure on how to deal with this on the 7203 or if it's ok to have that discrepancy!! 

Basis, on 7203 or elsewhere, will rarely agree to any Balance Sheet amounts.