Thank you for your question, and thanks for using JustAnswer.com. When you have an S-Corp, you pay income tax on your personal tax return on the entire profit of the business. Therefore, when you pay for personal items you have already been taxed on that income.
In the case of loans, if you are going to pay those loans back, that is never income - to you or the S Corp. It's only income if you don't pay the loan back.
So, if you are using business loan
proceeds for personal expenses, that is not taxable income to you. However, your business will be taxed if at some point in the future you default on the loan and the lender forgives the debt.
With an S-corp, you need to be paying yourself a reasonable salary. If you don't, the IRS can reclassify some or all of your owner draws as salary. Make sure that if you have not paid yourself a salary this year, to do so ASAP by reclassifying some of your draws as salary and paying the applicable payroll taxes.
Please let me know if you need additional assistance. Thanks for using JustAnswer.com and have a happy, and safe, New Year
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You should be aware that your question, as with most tax questions, can never really be answered completely...addressing all the permutations; that is because of the many assumptions that have to be made I have done my best to determine what I think you are asking and answering it in the most direct and understandable manner possible. If, however, after reviewing the questions, you have any uncertainties or further questions, please do not hesitate to ask.