Interesting I thought it was limited by Retained Earnings/balance at the beginning of the year plus Ordinary Income. This seemed to make sense since they are all retained earnings anyway until a distribution is taken.
So my question/concern is what kind of dividend would they be classified as on the 1099-DIV because these are accumulated earnings previously taxes and shouldn't be taxable? Also what are line 5a and 5b (ordinary and qualified dividends) on the schedule K-1 for if not for that? Some kind of foreign earned income I believe it references in the instructions...
