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arquale
New Member

I have owners draws showing on my K1 (1120s) but when I enter it into Turbotax that amount does not show as income why not?

I use Turbotax business for filing my SubS corporation taxes and Turbotax Deluxe to file my personal

1 Reply
Critter
Level 15

I have owners draws showing on my K1 (1120s) but when I enter it into Turbotax that amount does not show as income why not?

"draws" are a bookkeeping concept NOT taxable income ... you are taxed on the overall profit of the business for an S-corp wether you take out all the profits or not ... also you should be taking a paycheck from the company and issuing yourself a W-2 at the end of the year since you are an employee of the corp....

http://loopholelewy.com/loopholelewy/01-tax-basics-for-startups/s-corporations-06-taking-money-out.h...

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