Why wouldn't the shareholder repayment  of a short term loan to cover expenses reduce the income reported for the tax period? The loan is not income & when repaid not an expense, however the use of the loan monies to pay expenses is recorded as such ie: rent, utilities,  payroll etc. (interest for a loan would be an expense, but  as the  shareholder you're not going to charge interest (a lending bank otherwise would)

I think the proper category in QB would be loan FROM shareholder for any amounts the owner loaned the company and any repayments for any reason would reduce that by making an entry in payments TO shareholder.

Maybe this will help clarify things.

When you or any other entity borrows money, that money does not belong to the borrower. It never was, is not now and never will be the borrower's money. Therefore, it is not taxable income in any way, to the borrower.

 

When you or any other entity lends money, that money is "YOUR" money and you already paid taxes on it. When you lend it out it does not reduce your taxable income. When it gets paid back it does not increase your taxable income. However, as a lender you are expected to charge and collect interest on that money. You the lender *will* pay tax on that interest too - generally in the tax year it is paid to you. If you don't charge interest, then with rare exception (which appears to not apply here) you will be taxed on "imputed" interest which you are required to figure and report.