TurboTax

File with experts
File your taxes
Experts at your fingertips

An expert helps with your taxes, or does them for you
TurboTax Expert Full Service

TurboTax Expert Assist

TurboTax Self-Employed
Prior year taxes
File myself
File myself
Do it yourself

We'll guide you step-by-step
TurboTax Do It Yourself

TurboTax Self-Employed

TurboTax Desktop
TurboTax Free

Activate your product

Prior year taxes
Business
Business
Business taxes

Get your T2 corporate return done right, your way
TurboTax Business

TurboTax Business Desktop
Tax situations
Tax situations
Tax situations

Find extra guidance for your big life moves
For investors

For 25 and younger

For self-employed

For new to Canada

For life changes
Resources
Resources
Resources

Explore tax tools, get tips, and read reviews
Personal income tax calculator

RRSP savings calculator

Learning hub

TurboTax support (FAQ)

TurboTax community
Pricing

Community

Solved

A shareholder was repaid part of a loan made to the business. Does the amount repaid this year get put on the taxes for 2024?

Forum|Forum|1 year ago
December 31, 2024
2 replies
0 views

No text available

Best answer by pk12_2

@mgpatzwald assuming that the loan the shareholder made to the entity was with after tax dollar, the partial return is that -- ( return of part corpus ). Obviously if there was some additional payment / return as interest etc.. that portion is untaxed income and therefore is taxable income to the shareholder.

Does this make sense ?

pk12_2Answer

Employee

@mgpatzwald assuming that the loan the shareholder made to the entity was with after tax dollar, the partial return is that -- ( return of part corpus ). Obviously if there was some additional payment / return as interest etc.. that portion is untaxed income and therefore is taxable income to the shareholder.

Does this make sense ?

what type of corporation? if it was an S-corp and he used the basis in the loan to deduct losses, repayment will have tax consequences. in addition, he'll need to include form 7203 with his 1040.

in addition, regardless of the type of corporation if the loan had a below-market interest rate, code section 7872 may apply which would require that each year interest be imputed.