Welcome back! Ask questions, get answers, and join our large community of tax professionals.
cancel
Showing results for 
Search instead for 
Did you mean: 

I own 100% of a C Corporation that has loaned to me $1,000,000.00 over the last 20 years. What are the options to eliminate this loan to me on the books?

jastaxes47
Level 1
 
0 Cheers

This discussion has been locked. No new contributions can be made. You may start a new discussion here

1 Solution

Accepted Solutions
TaxGuyBill
Level 15

The most obvious answer is to pay back the loan.

View solution in original post

0 Cheers
8 Comments 8
TaxGuyBill
Level 15

The most obvious answer is to pay back the loan.

0 Cheers
abctax55
Level 15

Sniff, sniff ...homework?

If not, if there was $ 1M to loan,  then there's enough cash to pay for a consult with an attorney & a paid tax pro to evaluate all the options.

"*******Tax software is no substitute for a professional tax preparer*******
( Generic Comment )"
0 Cheers
IRonMaN
Level 15

Congratulations, you just won a $1,000,000 paycheck since you evidently had been taking a paycheck over the last 20 years without paying taxes on it ------------------ at least that's the way the IRS will look at it.


Slava Ukraini!
0 Cheers
mojocpa
Level 7

or they could be classed as Dividends 

0 Cheers
abctax55
Level 15
Even worse...double taxation !
Altho penalties on late filed payroll for 20 years would sure add up.
"*******Tax software is no substitute for a professional tax preparer*******
( Generic Comment )"
0 Cheers
abctax55
Level 15
Unless maybe he's already taken LARGE salaries in those years?
"*******Tax software is no substitute for a professional tax preparer*******
( Generic Comment )"
0 Cheers
mojocpa
Level 7
The OP wanted options, not saying mine was a good one.
0 Cheers
abctax55
Level 15
I'm not sure there ARE any good ones...
"*******Tax software is no substitute for a professional tax preparer*******
( Generic Comment )"
0 Cheers