abctax55
Level 15
06-04-2020
12:23 PM
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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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