Tag Archives: Profits

Taxation from Repaid Loans to a Subchapter S Corporation?

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loans

I’m looking over some accounts for an S Corp. The way the company is set up right now, the founders have place their money into the company, but they’re treating it like a long-term loan; keeping track of the money invested and the interest it’s earning, with the intent of repaying those loans as the business becomes profitable.
But, we’re doubtful on the consequences of these paybacks. Is an individual reliable for income tax on these funds? The company president is of the opinion that it shouldn’t, since the profits and losses of an S Corp flow directly to the shareholders, so he’s essentially just transferring money from himself to himself. But none of us are tax experts.
Any advice on how we can best withdraw money from this company as it becomes successful? If it’s vital, we’re incorporated in New York.

Is Goldman Responsible for Greek Crisis?

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Goldman Sachs tough derivatives trades may have masked the Greek debt just long enough to hurt all of us again. Goldman Sachs made up an exchange rate that allowed the Greeks to look as though they were only engaging in a currency swap when, in effect, they were getting more than a billion more than they should have from the trades in credit. Its likely that Goldman made a killing on the commissions for the swaps, and then sold the swaps to a Greek bank for even higher profits.