Is my understanding correct, that for an S-Corp that if at the end of the Year, you have operating income in the bank (let's say $10K), and you have 3 partners (33% each), is that amount applicable to their taxes even though they will not get paid from it. Does that count towards the shareholders income taxes, even though they will not receive that money, ie. meaning that money is slated to be used for the business expensese of next year operating budget. What is the proper way to declare it?
2007-03-08
09:13:28
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3 answers
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asked by
acb29
4
in
United States