Same thing ... you would simply be collecting taxable interest for the loan. The fact that you took out a loan to make the loan is still a personal situation which is not deductible since this is not based on your personal residence or second home. You don't own the rental, the S-corp does and they will pay you the interest (which is deducted on the corp return) AND take depreciation on the rental. YOU do not get to deduct the interest again or depreciate a home you personally don't own. You need to think of the Corp as a separate non breathing non person entity and not as another part of you.
