Posts made in October, 2017


  Lending corporate cash to shareholders can be an effective way to give the shareholders use of the funds without the tax consequences of dividends. However, an advance or loan to a shareholder must be a bona fide loan to avoid being classified as a constructive dividend. Further, the loan must have an adequate interest rate to avoid being classified as dividends under the below-market loan rules of Sec. 7872.   What is...

Read More