Do I need to enter a shareholder short-term no-interest loan to the S-Corp if the S-corp repays the loan in the same year?

[SSLewis]

Due to cash flow issues, a shareholder (actually the President/Director/shareholder) made a short-term no-interest loan to the S-Corp early in the year in order that an outstanding gas tax bill could be paid.  Within three months, the S-Corp repaid the shareholder after additional gas royalty revenues had been received.  Does this even need to be entered and/or addressed in the tax return?  If so, where are the entries made?  Since it was nothing but a journal entry on the company books (money in from the loan proceeds and money out to repay the loan), was it even a tax-related item?

[Jim-from-Ohio]

If both ends of the transaction was in the tax year then it does not go on the return anywhere.

[rbynaker]

How much was the loan?

Does Section 7872 apply?

[Terry53029]

This is from Section 7872. 

"(C)Corporation-shareholder loans

Any below-market loan directly or indirectly between a corporation and any shareholder of such corporation."

As @rbynaker said you should check out section 7872

[SSLewis]

The loan was for $3,000.  Loan was made in January 2024 and repaid by the S-Corp back to the shareholder within about 60 days.

[SSLewis]

This is an S-corporation, not a C-corporation.  Does that make a difference?

[Jim-from-Ohio]

I don't see this being a big deal.  I don't think the rule applies to S Corps anyway. and the amount, even if it did would be immaterial.. 

[IRonMaN]

The rules would apply to S corps.  But as long as the loan was under $10,000 you don't have to worry about any interest implications.

[Terry53029]

It does apply to s-corp's, but under $10000.00 Not to worry

[qbteachmt]

"not a C-corporation."

This is a 7872 subsection reference: (C)Corporation-shareholder loans