100k sales means no Schedule L required.
Also not charging interest.
I always figured if I loan my S-Corp $1,000 and then just pay it back from sales it's all good and has no effect on taxes (maybe I'm wrong?).
However, I sadly loaned the biz money (under $5k) by swiping a personal credit card on the business POS machine. That means it appears on a 1099k.
Google implies to put an expense called Loans. I'm thinking maybe that's only if doing Schedule L?
I'm probably over complicating things, but I worry things should definitely matter HOW the money was used as well. How could it be the same if I loan the biz $1k and it used the money for COGS verses used it just to make a business credit card payment. (COGS = would be reported as a COGS expense was made, but a credit card payment isn't reported as it was the previous transactions that were the expenses).
UPDATED THINKING: If I loan the biz $100 cash and it pays a business credit card, the business can just give me the $100 back and it absolutely does not effect taxes at all. Pretty sure that's correct.
Still completely stuck on how to account for loaning money through a credit card machine where it hit a 1099K and thinking there's a difference between how the business used the money. Writing a loan as an expense PLUS adding an expense for money used for inventory/supplies seems off. (And then having it be just as a loan expense if I used the funds to pay a credit card payment where that isn't reported). Thanks for ANY ideas!
