Having full control of your papers at any time is crucial to alleviate your everyday duties and enhance your productivity. Accomplish any objective with DocHub features for document management and hassle-free PDF editing. Gain access, change and save and integrate your workflows with other secure cloud storage services.
DocHub provides you with lossless editing, the opportunity to use any format, and safely eSign documents without having searching for a third-party eSignature option. Maximum benefit of the file managing solutions in one place. Try out all DocHub features today with your free of charge account.
In this tutorial, Jeff from Louisville discusses how to avoid constructive dividends on shareholder loans for closely held corporations. He highlights the challenge shareholders face when trying to extract profits without incurring taxes on distributions, which are typically taxed as dividends. To circumvent this, some shareholders prefer to treat these distributions as loan repayments, avoiding double taxation. However, the IRS has established criteria for what constitutes a bona fide shareholder loan. If a distribution is deemed not to be a legitimate loan repayment during an audit, it may be reclassified as a taxable constructive dividend. To prevent this, shareholders should have a valid, signed loan agreement in place.
