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LLC taxed as a C corporation - Money withdrawn from business during the year. How is this filed on their Corporate 1120 and personal return?

TBMS
Level 1

I have a client that is a LLC taxed as a C corporation.  They have taken out payments to themselves in the course of a year. Their accountant recorded the payments as an expense. How is this filed on their personal tax return and on the corporate return? 

Should this be a loan/distribution/dividend? 


The payments to them for 2018 and 2017 is causing negative equity as well on their financials. 

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IRonMaN
Level 15

If payments were taken out and recorded as an expense, there should have been some W-2s prepared.

ACME Taxes, Tatoos, Tires and Tomatoes (I had to get rid of the turtles - they kept running away)

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IRonMaN
Level 15

If payments were taken out and recorded as an expense, there should have been some W-2s prepared.

ACME Taxes, Tatoos, Tires and Tomatoes (I had to get rid of the turtles - they kept running away)

View solution in original post

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