TAXMAN Posted January 2, 2014 Report Posted January 2, 2014 I think I saw this b4 but can't find. S corp(always been one). Shareholder#1 borrows money personally to buy out shareholder #2. Does interest paid on loan got to 4952 or sch-e as an additional adjustment being an ofsett to the k-1 profit commming from S-corp. BTW s-corp has no debt at all. Shareholder did not loan to S-corp, he just bought out #2 to gain a larger interest in the S-corp. Quote
Gail in Virginia Posted January 2, 2014 Report Posted January 2, 2014 IMO, this would be investment interest to the shareholder since he/she borrowed money to invest buy stock. Therefore, I would put it on schedule A via form 4952. Quote
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