Discussion:Active S-Corp Dist in Excess of Basis and NII

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Discussion Forum Index --> Advanced Tax Questions --> Active S-Corp Dist in Excess of Basis and NII

Discussion Forum Index --> Tax Questions --> Active S-Corp Dist in Excess of Basis and NII

Winnie13 (talk|edits) said:

12 June 2014
I am researching a complex tax question and am needing help. There is an Active S-Corporation Shareholder that had shareholder distributions in excess of basis. They own 100% of the S-Corporation. This is treated as a capital gain and reported on Schedule D.

The question is how to apply the Net Investment Income Tax rules to the Active S-Corporation Shareholder Gain for Distributions in Excess of Basis. Currently the amount is treated as Net Investment Income without an adjustment. Would the amount be a downward adjustment on line 7 of the Form 8960, due to income from an S-Corporation with an Active Shareholder? A tax code referencing this would be great.

Belle (talk|edits) said:

June 12, 2014
Winnie - this place was supposed to close on June 1 (see that pink banner at the top of the home page). Most, if not all, folks have migrated over to taxprotalk.com.


Give it a try; you aren't likely to get any responses here. You will have to register, and your first post is held for a short time to determine you're "OK"

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