Loan verify will not increase S corp. shareholder’s obligations base

The fresh new 8th Circuit affirmed a tax Judge governing that kept you to good shareholder’s verify off financing so you’re able to an S company was not an actual economic bills and this didn’t improve the shareholder’s obligations foundation about S organization (Hargis, Zero. 17-1694 (8th Cir. 6/), aff’g T.C. Memo. 2016-232) . This product covers one circumstances and just how an in the past – to – straight back loan is a possible option for investors who wish to increase their obligations basis when you look at the a keen S organization. Continue reading “Loan verify will not increase S corp. shareholder’s obligations base”