Business & farm

I found the following from IRS site 'If a shareholder receives a non-dividend distribution from an S corporation, the distribution is tax-free to the extent it does not exceed the shareholder's stock basis.'

 

So, I will distribute $50000 to myself this year since beginning share basis is $50000, instead of amending last year's tax. Certainly I will also distribute new income from this year.

 

hope it is OK