Announcement

Collapse
No announcement yet.

SCorp Distribution

Collapse
X
 
  • Filter
  • Time
  • Show
Clear All
new posts

    SCorp Distribution

    A client owns 100% of his S-Corp. He takes a reasonable W2 wage, he also took a distribution (draw) of $65,000.00. Does the distribution carryover to his 1040?
    Thanks.

    #2
    It depends.

    If the $65k was a distribution of PTI, it's not taxable. If it was paid out of retained earnings accumulated prior to the S Corp election, it's a taxable dividend. It could be a combination of both, and some of the distribution could be a return of capital, lowering his basis in the shares.
    Roland Slugg
    "I do what I can."

    Comment

    Working...
    X