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.

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Definitions:

Net Cash Provided

Refers to the total amount of cash generated by an organization's operations, investment activities, and financing activities within a specific period.

Transactions

Financial events or exchanges between parties that are recorded and have monetary implications, such as sales or purchases.

Investing Activities

Financial transactions related to the acquisition or disposal of long-term assets and investments.

Net Cash Provided

The total amount of cash generated by an organization's operational activities over a specific period, typically reported on the cash flow statement.