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Business, 18.08.2019 02:10 georgesarkes12

Scorporation borrows $5,000 from bank at 6% interest for one year. a. if bill, one of several shareholders of s corporation, signs an agreement with bank guaranteeing repayment of the loan, he may add $5,000 to the basis of his s stock. b. if shareholder bill signs a repayment guarantee he will be entitled to have his schedule k-1 from s corporation list 100% of the loan interest paid as his deduction to the exclusion of the other shareholders. c. even if shareholder bill signs a repayment guarantee he will not be permitted to increase his s corporation stock basis by $5,000. d. partnership and s corporation tax rules allowing partners/shareholders to increase the basis of partners/shareholders by the amount of partnership/corporation debt are identical.

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Scorporation borrows $5,000 from bank at 6% interest for one year. a. if bill, one of several shareh...
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