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Level 2
posted Dec 28, 2021 9:28:52 AM

Does a S corp need to issue a 1099 to a shareholder for repayment of loan?

If so, what type of 1099>

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1 Best answer
Level 15
Dec 28, 2021 9:46:12 AM

it is not issued for repayment. it does get reported, principal only,  on the shareholder's k-1 line 16 code E.  Only interest, if $600 or more, gets reported on a 1099-int

 

3 Replies
Level 15
Dec 28, 2021 9:46:12 AM

it is not issued for repayment. it does get reported, principal only,  on the shareholder's k-1 line 16 code E.  Only interest, if $600 or more, gets reported on a 1099-int

 

Level 12
Dec 28, 2021 9:51:50 AM

Mike's right....gets reported on the K1.......it affects the shareholder's basis.

Level 2
Dec 31, 2021 3:45:41 PM

Thanks!  Just what I was hoping to confirm.