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Restaurant Revitilization Funds Taxable as 1099-DIV when Distributed Out of C-Corp?

Level 3

Hi all,

I have a client (taxed as a corporation) who recieved the Restaurant Revitilization Fund previously, which increased the corporation's retained earnings. If the corporation is dissolving and needs to distribute all its retained earnings to the owner, does the amount from the Restaurant Revitilization Fund go on the owner's 1099-DIV for the year the corporation dissolves?

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1 Comment 1
Level 15

Money is fungible.

So yes, money distributed goes on the 1099-DIV.