Questions for my tax experts.  Would you recommend an S corp shareholder take distributions up to their basis each year?  If the company doesn't have the money to pay the distribution out, they can put it in a distribution payable account where the distribution has been granted but not paid.  If there is a positive basis in one year, but the next year they have a substantial loss that eats up their basis, they lost the ability to get money out of the company without paying capital gains.  I think it would be best to take money when you have basis and pull from it when you need it.  What are your thoughts?