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In the Case of a Zero Interest Below-Market Loan by a Corporation

Question 124

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In the case of a zero interest below-market loan by a corporation to a shareholder-employee,why would the corporation prefer that the loan was made to the individual because he or she was an employee,rather than because he or she was a shareholder? What could be done to strengthen the corporation's argument?

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Imputed interest on the loan to an emplo...

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