References in periodicals archive ?
As the corporation repays the debt, the debt basis decreases, lf flow-through losses have depleted stock basis, subsequent basis increases first must restore debt basis.
Shareholders run into problems when they have reduced or depleted their debt basis and the corporation repays any part of a shareholder loan.
Had the lender been a bank, it would have been entitled to only that amount of surplus funds which would repay the principal amount of the loan, but would have forfeited all of the interest on the loan.
The company said that it was able to repay the loan on the maturity date
At the end of the next tax year, Y's pro rata share of income is $2,000 and the S corporation repays $4,000 of the loan plus interest of $600.