On schedule K-1 (form 1120S) what does 16E mean? Also what is #4?

[cyreeder]

Turbo Tax Home & Business. Who does 16E refer to - repayment of loans to the individual from the company or refer to payment of loans from the individual to the company?

Also, on #4 - is the interest referred to interest paid to the company by the individual or interest paid to the individual by the company?

[KatherineC · Accepted solution]

Line 16E of Schedule K-1 (1120-S) is referring to repayment of loans that you made to the company.   (The company is paying you back.)  This affects your basis in the business but only affects your tax return if you have a loss and are claiming the loss using that basis.

You are asking about #4.  If this is a question about the interest income reported on Line 4 of the K-1, this is interest income the company has received from some source.  It is your share of the interest income that would be reported on Schedule B as Interest Income.

[lumenbeing]

There is no Interest income reported on Schedule B, so what are you talking about?