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ryanjl
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Is my S-corp investment considered not "at risk" if I took a loan out from the company to finance it?

In TurboTax, "Learn More" it states that "you are not considered to be at risk if you... Borrowed money from a lender who has an interest in the business other than as a creditor."
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Is my S-corp investment considered not "at risk" if I took a loan out from the company to finance it?


@ryanjl wrote:
In TurboTax, "Learn More" it states that "you are not considered to be at risk if you... Borrowed money from a lender who has an interest in the business other than as a creditor."

That simply means that you are not personally liable for repayment (i.e., the loan is nonrecourse). 

 

Assuming you are personally liable for repayment of the loan, your investment is "at risk".

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1 Reply

Is my S-corp investment considered not "at risk" if I took a loan out from the company to finance it?


@ryanjl wrote:
In TurboTax, "Learn More" it states that "you are not considered to be at risk if you... Borrowed money from a lender who has an interest in the business other than as a creditor."

That simply means that you are not personally liable for repayment (i.e., the loan is nonrecourse). 

 

Assuming you are personally liable for repayment of the loan, your investment is "at risk".

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