@LLC13 If you are trying to use TurboTax to file the 1120-S then you should be using TurboTax Business to do so. This loan is an item that affects shareholder basis, but nothing else (directly). Because it affects shareholder basis, it is also a balance sheet item if you need to maintain a balance sheet (which I recommend you do even if it is not required). I will admit that I am not super-familiar with TurboTax Business entries, but what you are looking for is a category associated with "Items that affect Shareholder Basis". A loan is a debt basis that has the effect of increasing shareholder basis (since the proceeds of the loan are included into corporate assets, such as cash on hand). As the loan is repaid, the interest figures will be considered business expenses, but payback on principal will have the effect of reducing the shareholder basis. Since the loan is not income, paying back the loan is not a company expense, but paying interest on the loan is a company expense.
In any version of TurboTax for personal returns, the company loan itself is not an item that will be entered directly into the return. However, if you need to provide your shareholder basis as part of your return (which is likely), then the information regarding the loan as expressed in your K-1 and Basis worksheets will be included in the return. This information helps the IRS determine if any distributions you receive are taxable, or if you are reporting a loss, whether or not you will be able to claim the loss.
I'm sorry I can't provide better navigational directions for TurboTax Business, but I hope this is helpful.
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