MinhT1
Expert Alumni

Business & farm

A loan isn't a capital contribution. A loan appears on the liability side of the balance sheet of the business. A loan repayment isn't a capital reimbursement.

 

If the business files as a partnership (form 1065), the loan is reported on line 19a - Loans from partners of Schedule L.

 

If the business files as an S-Corp (form 1120S), the loan is reported on line 19 - Loans from shareholders of Schedule L.

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