Kindly go through the background below and advise on the questions
2021
- Received bank interest income of $X from my S Corp
- Filed Business Tax Return showing Retained Earning of $X
- Business K1 Box 4 showed Interest Income of $X. Box 17 showed $X with code A
2022
- Preparing business tax return showing Loss of $X
- Preparing business tax return with Retained Earnings $0 ($X at start of the year to $0 end of the year)
Questions
- Please let us know if showing Loss of $X in 2022 business tax return is the correct way to reflect in the tax return.
- Assuming that we would have already paid tax for $X on the personal side in 2021 since S Corp is a pass through entity. Please confirm
Thanks
