Question: 1. Would you answer in above question be different if the shareholder had also lent the subchapter S corporation cash in an amount in excess

1. Would you answer in above question be different if the shareholder had also lent the subchapter S cash in an amount in excess of the shareholders’ allocable share of losses and deductions, and if so how?
2. A client of yours has been advised to have his wholly owned borrow funds from a third party with the loans guaranteed by the shareholder, rather than have the shareholder borrow the funds and loan it to the Do you agree?

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