02-15-2005, 05:30 AM
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 Re: Distributing S-Corp Profit to Shareholder "SCorp" <ihans[at]hotmail.nospam.com> wrote: - quote - > I have an S-Corp where I own 100% of the shares.
Correct. If you entered it properly, it should show up on> I am using Turbo Tax business to complete my taxes and I > have a few questions regarding non-deductible expenses and > distributing profit to myself. > 1) 50% of my meals/entertainment are not deductible, and > therefore reduce the basis of my stock (from 20K to $19646). > That just means if and when I sell my stock I would pay > capital gains on everything above my new basis, correct? Schedule M-1. - quote - > 2) I've finished entering all the info into my return on
Schedules K and K-1, and M-2.> TurboTax and have a profit of $1353. Turbo Tax automatically > decides that this is retained earnings. If I were to write > myself a check for this amount (too late for 2004 taxes, but > I could for 2005), where would I put it on my next return? - quote - > 3) How is the profit distribution affected by the
It isn't.> non-deductible expenses? I tried entering a distribution in > Turbotax just to experiment. It put it on the same line as > the non-deductible with a code D but there was an error > saying things didn't add up (Unfortunately I don't remember > exactly what TurboTax said.) -- Tom Healy, CPA Boulder, CO Web: http://www.tomhealycpa.com << -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << -------------------------------------------------> |
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02-13-2005, 11:31 PM
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| Distributing S-Corp Profit to Shareholder I have an S-Corp where I own 100% of the shares. I am using Turbo Tax business to complete my taxes and I have a few questions regarding non-deductible expenses and distributing profit to myself. 1) 50% of my meals/entertainment are not deductible, and therefore reduce the basis of my stock (from 20K to $19646). That just means if and when I sell my stock I would pay capital gains on everything above my new basis, correct? 2) I've finished entering all the info into my return on TurboTax and have a profit of $1353. Turbo Tax automatically decides that this is retained earnings. If I were to write myself a check for this amount (too late for 2004 taxes, but I could for 2005), where would I put it on my next return? 3) How is the profit distribution affected by the non-deductible expenses? I tried entering a distribution in Turbotax just to experiment. It put it on the same line as the non-deductible with a code D but there was an error saying things didn't add up (Unfortunately I don't remember exactly what TurboTax said.) As always, thank you for your help. << -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << -------------------------------------------------> |
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| distributing, profit, scorp, shareholder |
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