The same individual taxpayer is both a 50% partner in a partnership and the 50% shareholder in an S-Corp. Both firms borrow $100,000 from a local bank. The taxpayer signs a personal guarantee for both loans. What is the impact on the taxpayer’s basis in a) the partnership; b) the S-Corp?

Answer rating: 100% (QA)

Personal guarantee of a loan to a partnership or S Corp is when the tax payers made himself or ... View the full answer