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DId you take loan from shareholder for $55K? Are you repaying the loan back to the stockholder?
How did you report the loan when it was received by the Corp?
Hi, thanks for helping me.My wife and I are the owners and shareholders. We have loaned our start up company hundreds of thousands in hard cash expenses over the last 5 years. Last year, the company had enough sales that we started to pay ourselves back $55K of these loans.
We did not report the loans on a schedule L when we made them, we just reported expenses paid.
My question is, how do I get the $55K amount from schedule L to reflect somewhere on the 1120 page 1 so I can take it off the revenue. Is it an Other Deduction? Thanks!
When you reported the expenses as deductions in the year you incurred it, there should have been loan from stockholder(a liability) on Sch L in order for the balance sheet to tally.
You cannot take the loan repayment amount off from the revenue. It is not a deductible expense. It is a repayment of liability.
Let me know if you have any question.
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