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.
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Dividends reduce retained earnings.
Thank you. I entered them on Schedule M-2 under Distributions.
Dividends distributed to an officer of an 1120 goes in Schedule M-2, what if is not required to file a balance sheet.
They still reduce retained earnings.
Do we need to create a 1099-DIV for the shareholder?
Someone does. It's late, too.
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
Thank you !
YVW
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