Guest Allan Hensley Posted September 1, 2000 Share Posted September 1, 2000 What happens when a C-Corp. greater than 5% shareholder borrows from the Profit Sharing Plan and then proceeds to convert to an S-Corp prior to the loan being paid off? Is there relief in that the loan was proper at the time it was made, or is it deemed improper at the point when he becomes a more than 5% owner of the S-Corp? Anyone have any ideas or is there guidance? Link to comment Share on other sites More sharing options...
KJohnson Posted September 1, 2000 Share Posted September 1, 2000 I think the PT arises when S status is elected. You might want to look at DOL Opinion Letter 84-44A Link to comment Share on other sites More sharing options...
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