New to S corp in 2022, and I built an office for my business with my own cash. Now I have this paid-in capital that I thought I could return to myself by withdrawing tax-free income until paid back. But now I'm learning that all business income increases my basis too and that it would be tax-free distribution anyway. And how would I withdraw more than what the business makes?
The only thing I can see is that can I take more distribution because of the extra paid-in capital without 40% of it being salary, vs if I only withdrew from the business income and it had to be at least 40% salary.
Hope my question makes sense. I appreciate this community very much!
