I own 100% of a C Corporation that has loaned to me $1,000,000.00 over the last 20 years. What are the options to eliminate this loan to me on the books?

[TaxGuyBill · Accepted solution]

The most obvious answer is to pay back the loan.

[abctax55]

Sniff, sniff ...homework?

If not, if there was $ 1M to loan,  then there's enough cash to pay for a consult with an attorney & a paid tax pro to evaluate all the options.

[IRonMaN]

Congratulations, you just won a $1,000,000 paycheck since you evidently had been taking a paycheck over the last 20 years without paying taxes on it ------------------ at least that's the way the IRS will look at it.

[mojocpa]

or they could be classed as Dividends 

[abctax55]

Even worse...double taxation !
Altho penalties on late filed payroll for 20 years would sure add up.

[abctax55]

Unless maybe he's already taken LARGE salaries in those years?

[mojocpa]

The OP wanted options, not saying mine was a good one.

[abctax55]

I'm not sure there ARE any good ones...