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We are a 5% owner of a small incorporated resort business in…

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We are a 5%...

We are a 5% owner of a small incorporated resort business in minnesota. Is it ok to take some of our wages and write them off to a shareholder loan

Accountant's Assistant: Is there anything else the Accountant should be aware of?

I dont believe so

Submitted: 2 months ago.Category: Tax
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Answered in 13 minutes by:
12/19/2017
Tax Professional: Lev, Tax Advisor replied 2 months ago
Lev
Lev, Tax Advisor
Category: Tax
Satisfied Customers: 31,342
Experience: Taxes, Immigration, Labor Relations
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My understanding is that the resort business in Minnesota is organized as a corporation.

You are shareholders and employees of that corporation.

As employees - you are entitled to receive wages as a compensation for services you provide.

Wages are reported on W2 form and will be included into your individual tax return.

For the corportaion wages generally will be deducted as business expenses and will reduce net business income for the corporation.

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Tax Professional: Lev, Tax Advisor replied 2 months ago

HOW you will use these wages - that is up to you.

It is my understanding that the corporation provide a loan to you which was expected to be paid back.

If so - you may use any funds - including the money from wages to pay off that loan.

So far - I do not see any issues...

Please elaborate if needed.

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