Mark_5
Employee Tax Expert

Business & farm

Most of the time when you are taking a distribution from the company you are not affecting the tax calculation to you.  Your distributions are more of a reduction of your equity in the business and your income on the amount if determined in the year earned.  Two of the major issues related to distributions is that you do not want to distribute more from the company than you have equity in it and if there is more than one owner you will want the Distributions to be proportional to the ownership.