Loans between businesses and their owners – Why you need to dot the “i’s” and cross all the “t’s”

Description

Abstract: It’s quite normal for closely held businesses to transfer money into and out of the company. But it’s critical that they make those transfers correctly. If not, they might run up against the IRS — the service looks closely at how such transactions are characterized: Are they truly loans or an advance? This article explains the tax advantages of loans and what’s necessary for them to pass muster with the IRS.