Let say a C-Corp distributes property to a shareholder.

The property
Basis: $40,000
FMV: $80,000
Loan: $20,000 (Assumed by shareholder)

I know on the corp side. the current earning profit(CEP) will +40,000, and the distribution will be $80,000. And the Liability $20,000 increase the CEP. CEP $60,000, and Distribution $80,000. So $20,000 will reduce the Accumulated Earning and Profit(AEP)


And on the shareholder, the shareholder will report a $80,000 distribution, but how the shareholder treats the loan? what form they should report. And, please correct me if I am wrong.


Please advice.
Thank You.