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Level 3
posted Dec 30, 2020 1:18:26 PM

S Corp Form 1120S and Additional Paid-in Capital (APIC)

Is the owner of an S-Corp able to draw against APIC? As I understand it, Paid-in Capital increases stock basis and owner equity. If the owner were to draw 10,000 from their basis of 50,000, should Schedule L line 23 be adjusted for the draw, or would stock basis be tracked separately?

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1 Replies
Level 12
Dec 30, 2020 2:43:39 PM

Cash gets reduced for the draw and so does your basis.