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If anyone ever caught my grandmother talking to her self, and said something to her about it, she just smiled and said "I love to hear a wise woman speak."

You have to calculate earnings and profits of the year. The C corp could pay out a distribution to be taxed as a dividend if it has sufficient current year earnings and profits. E & P computation is different than computation of taxable income. Code sec 316; Reg sec 1.316-1. From MTG - Sources of Distributions. To be subject to income tax as a dividend, a distribution received by a shareholder must be paid out of earnings and profits of the distributing corporation. A dividend is any distribution made by a corporation to its shareholders out of its earnings and profits accumulated after February 28, 1913, or out of the earnings and profits of the tax year, computed as of the close of the tax year without diminution by reason of any distributions made during the tax year, without regard to the amount of the earnings and profits at the time of the distribution was made. (Code Sec 316; Reg. sec 1.316-1) In order to determine the source of a distribution, consideration should be given first, to the earnings and profits of the tax year; second, to the earnings and profits accumulated since February 28, 1913, but only in the case when, and to the extent that, the distributions made during the tax year are not regarded as out of the earnings and profits of that year; third, to the earnings and profits accumulated before March 1, 1913, only after all of the earnings and profits of the tax year and all of the earnings and profits accumulated since February 28, 1913, have been distributed; and fourth, to sources other and earnings and profits only after the earnings and profits have been distributed (Reg. sec 1.316-2). If the current year's earnings and profits are sufficient to cover all distributions made during the year, each distribution is a taxable dividend. If the year's cash distributions, however, exceed current earnings and profits, a part of the earnings and profits must be allocated proportionally to each distribution, on the basis of the following formula: distribution x (current earnings and profits / total distributions). The remaining portion of each distribution not covered by current earnings and profits is then treated as a taxable dividend to the extent of accumulated earnings and profits. If these are not sufficient to cover the remaining portion of any distribution, they are to be applied against each distribution in chronological order until exhausted.

That is not a problem: the problem is when you start having three-way arguments with yourself, and losing.

Right on. The only problem is when you start answering your self. Of course I don't hear well after dark either.

Sounds like a return of capital to me.

Yes, not using ATX letters is unfortunate but I also use the AICPA letter which is recommended by my insurance. If I was smart enough to do a mail merge, it wouldn't be so bad but I never learned that. So I just change the address and names, print and go on to the next. Then sign each one, too. Then make a copy for the client. Hmmm, time to retire.... But I just got two more clients within the last 2 weeks!

A checkbox on letter options to paper file the return. Be warned, if you set the preference to assume efile, this new feature doesn't work. It also didn't work with the first state that I tried it with, MD.

I agree that it would be deductible as interest IF the unlying debt/charges were for deductible business-related purchases or obligations.

they are interest and deductible

And "Tax Freedom Day" is getting later and later, as well.

The organizer questions are sorely lacking and need a major revision. I just put a long post over in the Enhancements forum about this. Attached is what I spent more time on than I really wanted to. I know some of you have your own questionnaire in excel, but that would make an already tedious task, more tedious. ATX needs to work on this. 2015 Organizer Questions.pdf