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I am having trouble balancing my Schedule M. There are $44,000 worth of withdrawals by the Corp officer. I'm not figuring out where to put them to make it flow as taxable income to the K-1 and balance my schedule
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C or S Corp?
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Why would an officer take withdrawals? Is she a shareholder, too?
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S
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problem solved
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Just in case of 'delete', here's the original post:
I am having trouble balancing my Schedule M. There are $44,000 worth of withdrawals by the Corp officer. I'm not figuring out where to put them to make it flow as taxable income to the K-1 and balance my schedule
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S-Corp shareholders/officers generally take distributions AFTER they take payroll based on reasonable compensation.
Distributions are not (generally...) taxable.
They are an adjustment on M-2 on Form 1120-S; they appear on Sch K, line 16d
They show on the K-1 on line 16, Code D
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You stated S Corp, but this would not be Dividends and this typically is an error: "to make it flow as taxable income" Because distributions, up to a point, are not taxable.
Don't yell at us; we're volunteers
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Good for you. Thanks for sharing.