Discussion:S-Corp bottom line income
From TaxAlmanac, A Free Online Resource for Tax Professionals
Note: You are using this website at your own risk, subject to our Disclaimer and Website Use and Contribution Terms.
From TaxAlmanac
Discussion Forum Index --> Tax Questions --> S-Corp bottom line income
Budrok@Aol.com (talk|edits) said: | 13 January 2006 |
| Bottom line S-Corp. Ordinary Income on the 1120S when passed to the K-1. Would this be the same as Dividents paid to an Officer that's passed to a K-1 then to their personal Sche. B. I guess what I mean is would there still be no SE Tax In either case? Is this correct? | |
| 13 January 2006 | |
| It is not the "same" as dividends even though you are correct both are not subject to s/e tax. "dividends" are subject to the 15% qualified dividend rate for federal tax purposes and would not be reported on the k-1 but a 1099-div from the s corp to the shhr. dividends the s corp earns and passes through to the shhrs would be on the k-1 also subject to fed 15% rate if qualified. "bottom line" s corp income is subject to your shhr's ordinary income tax rates. | |
| 13 January 2006 | |
| Do you really mean Dividends or are you talking about Distributions? There is a huge difference. If you are talking about Distributions, these are not reported on a 1099 but are reported on K-1. As well, they are not reported on the shareholders' 1040 anywhere, nor are they taxable if not in excess of basis. I'm sorry if I misunderstood your questions.LJACPA 08:14, 13 January 2006 (CST) | |
NOTICE to readers:
This discussion has been locked, as the long user name of the original poster will negatively affect the formatting of the tax forum columns on the front page, if any new reply is added. If you have a follow-up question or comment, please start a new discussion instead. Attempting to post using the "reply" box below will result in a generic error message. Thank you.
To join in on this discussion, you must first
log in.
