gpilot98[at]hotmail.com (agav8r) wrote:

- quote -

In addition to David Woods comment, most (all?) states
consider the distribution to be a "dividend" under state
law. It isn't a dividend for federal (and usually state)
tax purposes but it is for state law. Most (all?) states
require a formal Board of Directors' meeting to declare a
dividend. This should be documented according to the rules
of your state. Further details are available from an
attorney, I am not an attorney.

--
Drew Edmundson

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"agav8r" <agpilot98[at]hotmail.com> wrote:

- quote -

It lowers your basis in the stock. Nothing else.

--
David M. Woods, EA, ChFC, CLU
Woods Financial Services
Norwood, MA 02062
www.woods-financial.com

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I own a small s-corporation. I am the only employee and
stockholder. I pay myself a reasonable salary monthly. My
question is this. On my personal tax returns I have paid a
decent amount of taxes on the corporations "profits". Over
the last three years it amounts to roughly $60,000 worth of
profits that have been taxed. I am wanting to cut myself a
check for the distribution of a small amount of these funds
for personal use ($20,000). Is there anything I need to do
before I do this? I am assuming that there are no tax
ramifications since it has been taxed once already?? Any
help would be appreciated.

Thanks.

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