MaxA1
Expert Alumni

Get your taxes done using TurboTax

If your overall income is greater than your 1099K then you don't need to worry about the loan you issued yourself via the POS system.  The loan is a balance sheet item and is offset once it is paid back.  There's no income or tax effect on loans.  The only tax implications for a loan could be related to interest income/expense, which you mentioned you aren't charging any interest income.

 

Additionally, since you aren't required to report your balance sheet on Sch L, the loan amount will not be reported to the IRS which will stay "under the radar".  Note, that in order for a shareholder loan to be "legit" in the IRS' eyes, it needs to be an interest-bearing loan.

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