Transferred from personal account to S-Corp

Forum|Forum|5 years ago
August 7, 2020
2 replies
9 views

Last year, I transferred from my personal account to my S-Corp account to make some payments on my business credit card since I had no income. Did I lend to my S-Corp? Where do I mention this?

Best answer by Anonymous_

In this situation, the injection can be treated as either. However, there should be some evidence of the debt if a loan has been made to the corporation.

Anonymous

you made a loan to the S-Corp. You have to file the S-Corp return to take a tax deduction for the S-Corp's expenses. technically those credit card expenses, assuming they are business expenses, were deductible by the S-Corp and the deductible on your personal return through the K-1 in the year they were put on the CC assuming you had basis in the S-Corp. TT does not compute basis. if there was no basis in the year the expenses were put on the CC putting money into the S-Corp gives you basis but even then you can only deduct the expenses to the extent you have positive basis before considering those expenses.

Carl

Level 11

@12309 just curious. Wouldn't or couldn't that be considered a capital contribution instead of a loan? The OP does after all, own the S-Corp.

Anonymous_Answer

Level 15

In this situation, the injection can be treated as either. However, there should be some evidence of the debt if a loan has been made to the corporation.