A shareholder loaned $100,000 to the S Corp in TY2021 which was repaid in TY2022. Discuss the appropriate recording of the loan transactions for both years and the effect on shareholder basis for both years. State the applicable rules that apply to this situation.

SWFT Comprehensive Volume 2019
42nd Edition
ISBN:9780357233306
Author:Maloney
Publisher:Maloney
Chapter22: S Corporations
Section: Chapter Questions
Problem 3DQ
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A shareholder loaned $100,000 to the S Corp in TY2021 which was repaid in TY2022. Discuss the appropriate recording of the loan transactions for both years and the effect on shareholder basis for both years. State the applicable rules that apply to this situation.

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