Question
HELOC used for Scorp
Client took out $200,00 + heloc to fund new business that is a scorp.. The business had been making the payments directly to bank. Can tracing rules apply and not be considered loan from shareholder and not have to show as loan from shareholder and not have to issue shareholder a 1099 int. Trying to figure the best way for this new client. They did put in a sizeable amount of their own cash for equity but still trying to straighten out this mess.
thx
Michele
