Qbteachmt:

please be patient with me but I have a question and you seem very knowledgeable about it. So my situation is I work at a company that is a s corp ran by two people. Several months back, they decided that I would eventually be a partner and that I could run my side business through theirs now and I would obtain a percentage of the job. I have accumulated 11,000 dollars now in their account that I told them to hold on to so that one day I could buy a percentage of the business. I really don’t want them to write me a check for that amount and I have to claim it as income. My question is, is can they claim that money as retained earnings and not pay taxes on it either?