S-Corp Distributions tax treatment

[WA&FS16]

S Corp distribution are taxed as long term Capital Gains. They flow over to the individual tax payers 1040. This is where I am getting confused, it adds to the Total Income and flows down the 1040.

Does this mean that S-Corp Distributions get taxed LTCG + Fed Income Tax? Or at the 2nd part of the 1040 its taxed as LTCG and not Fed Income tax?

Thanks everyone in advance for their guidance.

[TAXNJ]

See TTB tab 19 and 19-8 for explanation

[abctax]

Taxable Distributions

Just to clarify/address the OP's statement that "S Corp distribution are taxed as long term Capital Gains", not all S-Corp distributions are taxable. Only distributions in excess of basis are considered taxable.

[TAXNJ]

Just to clarify/address the OP's statement that "S Corp distribution are taxed as long term Capital Gains", not all S-Corp distributions are taxable. Only distributions in excess of basis are considered taxable.

Yes one good reference (as you know there are many) See TTB tab 19 and 19-8 for explanation.

Think that the above mentioned reference gives simplified explanations and think it may be helpful to the original post as a starting point. Yes?

[abctax]

Yup

I agree - but I was just a bit bothered with that OP "blanket statement" for any future searchers that might not bother with the link/and reading it :-)