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Get your taxes done using TurboTax
@LuckyLefty8 wrote:6) S-Corp K-1 shows $50K on the K-1 as net profits
Nope, and that was the primary point of my previous post. Your S corporation cannot just pass the income it receives to the C corporation prior to that income factoring into the S corporation's return and the K-1.
Thus, it is the S corporation that will have to show all of the profit generated from the income it receives prior to passing it along to the C corporation. Any other outcome does not comport with federal income tax law and regulations and is further exacerbated if the S corporation receives a tax reporting statement (unlikely since it is a corporation, but it is possible).
‎December 12, 2019
9:16 AM