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Old 11-12-2008, 01:05 AM
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Accrued interest on shareholder note to C-Corporation

Does a cash basis taxpayer (100% shareholder in Corporation) have to recognize interest income that has been accrued, not paid, on his shareholder note?

The Corporation has only deducted the interst when it was paid, they made an M-1 adjustment for the accrued interest (not deducted on corporate tax return).



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