First, the S-Corp MUST pay you a "reasonable" salary or wage, a salary or wage that gets reported to you on a W-2. Having a W-2 position elsewhere doesn't relive you of this obligation.
I'm not sure I'm following along with you on the "loan repayment/personal contribution" issue. It sounds like you funded the S-Corp as a form of "equity". At that moment the S-Corp's balance sheet would have an asset in the form of cash and an equity balance in the same amount. Your personal balance sheet would reflect a decrease in cash and an asset of "investment in S-Corp" of the same amount. It sounds like you then reclassified over in the S-Corp some amount of that initial contribution from "equity" to "loan payable to shareholder." And your personal balance sheet would reflect a reduction in "investment in S-Corp" and a new asset of "note receivable from S-Corp.
(I fully understand that you've probably recorded NONE of this in this fashion, but I'm trying to give you the flavor of how interactions between "you" and the "S-Corp" SHOULD BE handled.)
If I've got the theory right here then you should understand that the "loan repayment" is NOT AN EXPENSE to the S-Corp and NOT INCOME TO YOU. All of the activity recording a loan repayment goes on on the BALANCE SHEET, both the S-Corp's and yours.
It sounds like this is your first year of operation. I'd strongly suggest that you go find a competent local CPA to help you with your first income tax returns, (1120S and Form 1040) so that you get off on the right foot.
Tom Young
