S corp and loan liability when bus closes

[Christine384]

When a business closes but shareholder still owes bank for business loan, can interest on this loan be taken personally?   what about principal? 

[qbteachmt]

What about the principal: Principal repayment is never part of tax reporting. It is debt service.

[Christine384]

I should have asked if there is any at risk loss on principal.

[rbynaker]

Making a principal payment on behalf of the S-Corp will increase the shareholder's basis in the S-Corp which, in turn, might free up some losses previously suspended due to lack of basis.

[qbteachmt]

We don't know if there are multiple shareholders, and if the business closed, is the S Corp being terminated? That means assets and liabilities are being assumed by someone or what is happening?