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Jason Watt discusses the often misunderstood topic of shareholder loans in this tutorial. He attributes some of the confusion to the accounting profession, noting that the term is frequently used but not clearly defined. From an accountant's perspective, a shareholder loan reflects whether a corporation owes money to a shareholder, which is generally favorable, or if a shareholder owes money to the corporation, typically unfavorable, though exceptions exist. Watt emphasizes the importance of understanding the nature of the shareholder loan account, as simply stating there is a loan balance fails to clarify which party owes money. He clarifies that the video is for educational purposes and not tax advice.
