Thank you for all your assistance. It was helpful and very informative.
I want to make sure I understand what you wrote. Thanks for the screenshots as well.
So, we will not list these items as non deductible on the K1. We will enter the shareholders cash distribution accordingly and if everything is done correctly, the K1 should list the following
Line 1 Ordinary Income $20,275.00
Line 17code: V* Employees wages $37,000.00
Line 16 code D $26,500.00 our portion of shareholder distribution
Yes we are aware the tax deadline is Friday Sept 15th. This is the only issue holding us back. Everything else has been entered in.
On a separate note: what would apply to Nondeductible expenses when it comes to calculating shareholders basis. Can you either provide a link on some samples so we know for the future as well.
