C corp retained earnings distributed in S corp

[RightOn]

Taxpayer owned a C-corp years before and had retained earnings when he converted the C-corp to a S-corp a few years ago. Would it be long-term capital gain if it is distributed to him now?

[ChEAr$]

Taxpayer owned a C-corp years before and had retained earnings when he converted the C-corp to a S-corp a few years ago. Would it be long-term capital gain if it is distributed to him now?

Provided the corporate stock met qualifications and stockholder himself also met qualifications (check for ownership and dating requirements), corporation issues a 1099div next January for the dividends.

[RightOn]

Provided the corporate stock met qualifications and stockholder himself also met qualifications (check for ownership and dating requirements), corporation issues a 1099div next January for the dividends.

But would it be ordinary dividend, qualified dividend or capital gain on the 1099-DIV?

[ttbtaxes]

Assuming that C corporation R/E = earnings and profits, the distributions would be qualified dividends to the extent of E&P.

It would NOT be treated as a long-term capital gain.