nicole93
Level 1

I am working an amendment for a client, but I am stuck on this one thing. This client has always been an S Corp so there is no AEP.  I know distributions cannot take AAA negative, but losses can. I am trying to tie retained earning to AAA. I know the difference is the distributions that could not take AAA negative. Is this a permanent difference?

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sjrcpa
Level 15

Yes.


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