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https://www.irs.gov/businesses/small-businesses-self-employed/paying-yourself#:~:text=A%20loan%20by%20a%20corporation%20to%20a%20corporate,would%20also%20be%20an%20indication%20of%20a%20loan.
https://www.lawinsider.com/clause/loans-to-officers
Loans to Officers. Make any loans, advances or other extensions of credit to any of Borrowers ' executives, officers, directors, shareholders or employees (or any relatives of any of the foregoing) in an aggregate amount exceeding $200,000, other than those set forth on Schedule 6.17. Sample 1 Sample 2 Sample 3 See All ( 4) Remove Advertising
https://taxes.uslegal.com/articles/irs-treatment-of-loans-to-officershareholder/
The court outlined certain conditions beneficial for the taxpayer to demonstrate in order for the funds to be treated as a loan, including (1) the existence of corporate records indicating that the corporation itself considered the transfer to be a loan; (2) tax returns filed by the corporation indicating amounts due on loans to shareholders.
https://www.lawinsider.com/clause/loans-to-officers-and-directors
There are no outstanding loans, advances or guarantees of indebtedness by a Target Company to, or for the benefit of, any of its officers or directors ( including ex- employees and ex-directors) or any of the members of such officers ’ or director’s families within the fourth degree of consanguinity or affinity. Sample 1
https://www.jstor.org/stable/40683336
CORPORATE LOANS TO OFFICERS, DIRECTORS AND SHAREHOLDERS By JOHN F. RICH* There are in effect today some twenty-seven state statutes1 regulating loans to officers, directors or shareholders of business cor- porations. Such legislation must be regarded as the principal deterrent to a dissipation of corporate assets through loans to "insiders".
https://www.irs.gov/businesses/small-businesses-self-employed/s-corporation-employees-shareholders-and-corporate-officers
Purported “loans” from S corporation to its sole shareholder, officer, and director, were wages for purposes of FICA and FUTA taxes. The loans were unsecured demand notes bearing no interest, loans were made entirely at the discretion of shareholder, and the shareholder regularly performed substantial, valuable services for taxpayer.
https://www.law.cornell.edu/uscode/text/12/375a
(2) Mortgage loans A member bank may make a loan to any executive officer of the bank if, at the time the loan is made— (A) it is secured by a first lien on a dwelling which is expected, after the making of the loan, to be owned by the officer and used by him as his residence, and (B)
https://edd.ca.gov/siteassets/files/pdf_pub_ctr/de231pc.pdf
2. The recipient of the loan was a corporate offcer. The loan was given to the corporate offcer for his convenience when his salary was being garnished. The loan agreement was drafted by the corporate offcer and contained terms entirely favorable to him; it was an open-ended agreement providing a favorable rate of interest and payable only on ...
https://www.irs.gov/businesses/small-businesses-self-employed/paying-yourself
A loan by a corporation to a corporate officer should include the characteristics of a loan made at arm's length. That is, there should be a contract with a stated interest rate, a specified length of time for repayment, and a consequence for failure to repay the loan. Collateral would also be an indication of a loan.
https://www.fundera.com/blog/giving-employee-a-loan
According to the IRS, in a qualified plan, “the maximum amount that the plan can permit as a loan is (1) the greater of $10,000 or 50% of your vested account balance, or (2) $50,000, whichever is less.”[4] Note that the employee will be charged interest on the loan, and the loan must be repaid within five years. Use a Third-Party Service
https://www.accountingcoach.com/blog/employee-loans
A loan to an employee is money advanced by the company to assist the employee. If the employee is expected to repay the loan within one year of the balance sheet date, the loan balance is a current asset of the company. Any amount not expected to be collected within one year is a noncurrent or long term asset.
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