Hi,
I am one of 4 members in a small LLC, and we elected to be taxed as an S Corp.
I used $28k to start company in June 2023, but took no repayments until July of 2024, to date company has paid me $3000 (treating it as an open account with no formal loan terms).
Altho the money was laid in at the outset, I only listed the loan and amount repaid on my K-1 filed with the 1120S for 2024.
Having trouble with Form 7203....how do I determine stock basis when LLCs issue no stock? Or do I have no stock basis, only debt basis? And as far as that goes, am I correct in thinking my initial debt basis was $28k, and is ending at $25k? They refer to loan balance and debt basis? Are they the same thing? (Part II lines 16 and 21, confusing me.
Thanks!!
