In 2012 the rose corporation made a 400000 interest free

Reference no: EM13601360

In 2012, the rose corporation made a $400,000 interest free loan to john rose, the corporation 's controlling shareholder. Mr. Rose is also the corporation's chief executive officer and receives a salary of $300,000 a year. What are the tax consequences of classifying the loan as a compensation-related loan rather than as a corporation shareholder loan?

Reference no: EM13601360

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