Scorp paid w-2 wages to its officers but also distributions. Are the distributions deductible to the Scorp? If so where would I report them on the 1120S?

kim5 — Tue, 04 Jun 2019 20:16:36 GMT

No, distributions are not tax deductible to the S-Corp, n...

DDollar — Tue, 04 Jun 2019 20:16:38 GMT

No, distributions are not tax deductible to the S-Corp, nor or they taxable to the shareholders. They are not an expense, rather they represent retained earnings that have already been (or will be) included on shareholders K-1s, or a return of shareholders paid-in capital. They reduce shareholder equity.

topic Scorp paid w-2 wages to its officers but also distributions. Are the distributions deductible to the Scorp? If so where would I report them on the 1120S? in Business & farm

Scorp paid w-2 wages to its officers but also distributions. Are the distributions deductible to the Scorp? If so where would I report them on the 1120S?

No, distributions are not tax deductible to the S-Corp, n...