Shareholder basis

[Terry D EA]

Good morning to all! When a shareholder of an S-Corp makes a loan to the S-Corp and receives payment back plus interest, does the face value of the original note to the S-Corp effect the shareholder basis? My take is the loan does not effect the shareholder basis as it is not an investment but exactly what it is a "loan" that is repaid. Any guidance is appreciated.

Thanks,

Terry D.

[RoyDaleOne]

May I suggest you use the shareholder basis worksheet in the program.

It is under K-1. Print out a blank if you want.

The loans actually don't effect the shareholder's stock basis, however,

the loans may be taken into account to determine how much loss may be

deducted.