If the owner-manager of a private corporation is provided with a loan by his corporation to assist in acquiring a residence, he will not have to include the principal amount in income if he can demonstrate that he received the loan in his capacity as an employee, rather than as a shareholder of the corporation. Explain why this may be difficult for him to do.

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The Answer of If the owner-manager of a private corporation is provided with a loan by his corporation to assist in acquiring a residence, he will not have to include the principal amount in income if he can demonstrate that he received the loan in his capacity as an employee, rather than as a shareholder of the corporation. Explain why this may be difficult for him to do.

If the Owner-Manager of a Private Corporation Is Provided with a Loan