If an S Corporation Shareholder's Basis in a Loan to the Entity

question 61

Short Answer

If an S corporation shareholder's basis in a loan to the entity has been _________________, the shareholder recognizes gross income when the S corporation repays the shareholder.

---

Definitions:

Conglomerate Merger

A type of business combination where two or more companies in unrelated industries come together to form a single corporate entity.

Budget Cutbacks

The process of reducing budgeted expenditures, often in response to fiscal deficits, economic downturns, or reallocation of resources.

Psychological Needs

Basic human motivations that include the need for love, esteem, belonging, autonomy, and competence, influencing behavior and well-being.

Terminated Employees

Employees who have been dismissed or laid off from their positions within an organization.