Rather than have the S corporation borrow the money and then have - TopicsExpress

Rather than have the S corporation borrow the money and then have the shareholder-employee guarantee the loan (the usual arrangement), your tax accountant will want the bank to loan the money to the shareholders (who in turn re-loan the money to the corporation). If necessary, the S corporation can provide a loan guarantee. This arrangement, called a back-to-back loan, does create basis. ow.ly/FoBl0

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