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Level 2
February 17, 2021
Question

S-Corp Dividends

  • February 17, 2021
  • 10 replies
  • 29 views

My cpa had me record some distributions in 2019 as taxable dividends because we were trying to remove some old c-corp retained earnings.  I do not see those dividends on my K-1 for 2019 and there is still a balance in "taxable dividends" in 2020.   Can I do a journal entry to clear out that account for 2019 and put it into my "owners capital"?  

10 replies

M-MTax
Level 15
February 17, 2021

For a balance sheet entry?

Level 2
February 17, 2021

yes.

M-MTax
Level 15
February 17, 2021

Are you out of balance by that amount? Make an offsetting entry.