Taxpayer is the 100% owner of a S-corp.
In year 2010, the S-corp had a profit of $5,000.
So in year 2011, the S-corp distributed the $5,000 to him.
In the 2011 S-corp Schedule K1 of the taxpayer, the tax program entered $5,000 in box 16 with the notation D (property distribution).
My question: Is it correct to consider the $5,000 "Property distribution"? It is cash distribution and I always think "Property distribution" refers to something tangible.
In year 2010, the S-corp had a profit of $5,000.
So in year 2011, the S-corp distributed the $5,000 to him.
In the 2011 S-corp Schedule K1 of the taxpayer, the tax program entered $5,000 in box 16 with the notation D (property distribution).
My question: Is it correct to consider the $5,000 "Property distribution"? It is cash distribution and I always think "Property distribution" refers to something tangible.
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