"Martha Matthews, EA" <mtsmv9[at]earthlink.net> wrote:

- quote -

He certainly may do that since it is owed to him. Keep in
mind, though, that sometimes IRS will question why no salary
is being paid from the corporation to the shareholder. It
depends, I think, on the amount of money involved in the
loan between the shareholder and the corporation.

Wayne Brasch, CPA, M. S. Taxation

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TP has C Corp (he is only shareholder) with a loan due TP
from money he put into company. Can he not take a salary and
take repayments of the loan instead? TP will retire shortly
and the debt can not be repaid fully if he takes a salary.
He is elgible for social security.

This strategy was proposed to my husband and while I trust the
advisor my husband does not want to do anything which could
generate an audit. (He's been there and done that with a "tax
shelter" he bought before we met.)

Martha Matthews

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