revetaxes
Level 2
02-11-2023
08:04 PM
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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.