Seeing how we paid personal items totaling $53K and our profit was $40,550, would be then responsible for paying taxes on the difference which would be $12,450 or the full $53K or we don't pay any tax on it because we have a positive ending Shareholder Basis and we will only be responsible for the Ordinary income listed on Line 1 of your K-1 which will appear on our personal 1040 Federal Tax Return
We believe we are taking a reasonable salary for our position at our location in our State.
We can use all the assistance for this tax question. thank you for responding.
