- Mark as New
- Bookmark
- Subscribe
- Subscribe to RSS Feed
- Permalink
- Report Inappropriate Content
Business & farm
I will page Champ @Rick19744, but you should initially understand the difference between a distribution and net business income (you are subject to income tax on the latter while the former reduces your basis of your shares of the corporation).
Further, for a consulting (essentially 100% service) business, your salary is rather low in your S corporation calculation and the figure you have listed as a "distribution" could very well be subject to recharacterization by the IRS as salary (in part of whole).
‎January 12, 2023
1:30 PM
1,745 Views