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Business & farm
The funding that you note is considered a capital contribution to the S corporation. All expenses are then recorded on the S corporation return.
You also need to begin tracking your basis in your S corporation. This is very important as it determines the deductibility of any losses, tax impact of any distributions and ultimately gain or loss upon disposition.
Attached is a link that should provide some basic understanding of basis:
https://www.irs.gov/businesses/small-businesses-self-employed/s-corporation-stock-and-debt-basis
*A reminder that posts in a forum such as this do not constitute tax advice.
Also keep in mind the date of replies, as tax law changes.
Also keep in mind the date of replies, as tax law changes.
May 31, 2019
7:09 PM