A private company shareholder that loaned money died. What happens to the loan, tax & cost base?

 Author: Everlyjones123(Newbie)Newbie

14 Nov 2024

Hi, 

If a private company has only two shareholders/directors and a shareholder loans the private company $170,000. 

That shareholder that lent the $170,000 money died. 

Money and shares are to be distributed to the estate and shares preferably transfer. 

If sold would the shares cost base be on the shareholders date of death? 

Is the living shareholder/director meant to cover 50% ($85,000) of the $170,000 loaned to the company to beneficiaries or is this used as a deduction after? 

The company has money but not enough to cover $170,000. The company has money tied up in shares that would cover the loaned amount. 

Thanks

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