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Business & farm
The loss is correct. The loan is non-taxable and not counted as income to your business. It only affects the partner capital account which shows on the K-1 in L as other increase. The true income also shows in L as Current year net income (loss). The loan proceeds also show on the K-1 in Box 18 Tax-exempt income and nondeductible expenses with a B code.
March 13, 2021
8:35 AM