OK. The more I learn, the more confused I am.
Distribution comes out of my basis and doe not impact my net income or my retained earnings = got it
income remaining at the end of the year = net income ... got it
then TT talks about retained earnings. Are retained earnings the same as net income?
Do retained earnings ultimately get added to my basis (for potential distribution this year)
I understand I am paying taxes (through my personal tax return) on my net income or QBI but I am a little lost on the retained earnings vs basis.
None of the IRS documents explain this in a way I can understand.
HELP
