Re: Form 1120: Entering Dividends Paid by Corp to Shareholder

mobilestranger21 · ‎02-07-2021

I saw a similar question posted months ago but could not follow the solution that was provided.

On Form 1120, where can I indicate the dividends paid by the corporation to the sole shareholder? My balance sheet is out of balance and the difference is dividends paid.

Thank you.

sjrcpa · ‎02-08-2021

Dividends reduce retained earnings.

The more I know the more I don’t know.

View solution in original post

mobilestranger21 · ‎02-08-2021

Thank you. I entered them on Schedule M-2 under Distributions.

vandm2019 · ‎01-12-2022

Dividends distributed to an officer of an 1120 goes in Schedule M-2, what if is not required to file a balance sheet.

sjrcpa · ‎01-12-2022

They still reduce retained earnings.

The more I know the more I don’t know.

LARRYLIFE · ‎05-25-2022

Do we need to create a 1099-DIV for the shareholder?

sjrcpa · ‎05-25-2022

Someone does. It's late, too.

The more I know the more I don’t know.

Jaimeandjaime · ‎06-03-2022

Spoiler

For a 1120 Dividend Distribution

If you issue a 1099-Div is it taxable to the shareholder the dividend distribution ? The taxes due in the 1120 were already paid.

For a 1120 Dividend DistributionIf you issue a 1099-Div is it taxable to the shareholder the dividend distribution ? The taxes due in the 1120 were already paid.

abctax55 · ‎06-03-2022

@Jaimeandjaime

Yes, of course. Dividends PAID are taxable to the recipient; not deductible by the entity. That's an excellent example of the 'double taxation' component of C-Corps

HumanKind... Be Both

Jaimeandjaime · ‎06-03-2022

Thank you !

abctax55 · ‎06-04-2022

@Jaimeandjaime

YVW

HumanKind... Be Both