revetaxes
Level 2

Need help! Working on a new client's 1120s, the loan from shareholder is actually capital contribution since the corporation was set up.  My question is how I can move out the loan from shareholder without raising a red flag and input the amount in additional paid in capital.  Will there be tax payment if repay the loan from shareholders (actually a returned capital event)?  Thank you for anyone taking the time to answer the question.

0 Cheers