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phonelady
Returning Member

How do I show funds transferred from personal account to my s corporation on 1120-s?

 
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How do I show funds transferred from personal account to my s corporation on 1120-s?

either as a loan from shareholder or a contribution to capital. loans can have adverse tax consequences. IRC section 7872 may apply which would require the corporation to pay you interest to you on the loan(s) if they aree above a certain amount. the other issue is while this gives you basis to deduct S-corp loss, losses reduce the basis so repayment can result in income.  this does not appear to be the case in which the money is treated as paid in capital.   howwver, not knowing your full tax situation, best advice would come from a tax pro who could go over evrthing peersonal and corportate for the best outcome 

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