Personal Expenses - SH loan, distribution, or non-deductible exp?

Are they going to repay this?

Are there other shareholders to consider?

It's not nondeductible expense, because it has nothing to do with business. It has to do with a person thinking this corporation is their personal piggy bank and not a separate entity. This contributes to "piercing the corporate veil" and law firms love to see this, since it opens up the issue of risk for them to file suit against the person and the corporation, if need be. The reason to use a corporate structure includes asset and liability protection, and this taxpayer just blew up that protection. The IRS loves to see this, too, since they can come in and declare that $80k more as payroll and payroll tax avoidance can result in late taxes, interest and penalties being owed.

You should not try and use personal expenses in Scorp to try and dodge taxes. That is a section 230 code violation. You can use unreimbursed business expense on the shareholders 1040. As far as basis, nondeductible expense general does reduce basis (not below zero) See link: good info.

https://www.thetaxadviser.com/issues/2010/apr/scorporationbasisreductionsfornondeductibleexpenses.html 

Sec. 1367 provides rules for adjustments to S corporation shareholders’ basis in their stock. Generally, basis is increased for items of income (including tax-exempt income) and the excess of deductions for non–oil and gas depletion over basis of the property subject to depletion. It also allows for decreases in basis (but not below zero) by each of the following:

• Distributions;
• Items of loss and deduction that flow through to and are deductible by the shareholder;
• Nonseparately computed loss;
• Nondeductible expenses that are not properly chargeable to capital accounts; and
• Depletion deductions for oil and gas property that do not exceed the adjusted basis of such property allocated to the shareholder.

Sorry for shouting, 

DO NOT PAY PERSONAL EXPENSES FROM A BUSINESS ACCOUNT.

End of rant.