Abby Normal

Taxability of Distributions from S Corporations with No Accumulated E&P Section 1.1368-1(c) provides that in the case of a distribution by an S corporation which has no accumulated E&P, the distribution is taxed under a two-tier approach: 1. First, the distribution is a tax-free reduction of the shareholder’s basis in the corporation’s stock; then Any distribution in excess of the shareholder’s stock basis is treated as gain from the sale or exchange of the underlying stock. Noticeably absent from these rules is any reference to the S corporation’s AAA balance. This is because the AAA account serves to provide a dividing line between those distributions made from previously earned but undistributed S corporation income, which should not be taxed a second time, and those made from prior C corporation E&P, which must be taxed as a dividend. If no accumulated E&P is present, this dividing line is unnecessary, as it is not possible for a distribution to represent a taxable dividend made from E&P. Thus, in determining the taxability of distributions from an S corporation with no accumulated E&P, the AAA balance is completely irrelevant; rather, the only attribute of consequence is the shareholder’s basis in the corporation’s stock. (This is my understanding as well. But then my abnormal brain can only handle so much complexity. )

My Chrome home page is the one that checks for updates: chrome://settings/help

There's one that always wants to hug me and if she does I smell that all damn day. It's one of those super sweet smelling perfumes that kind of smells like nasty bubble gum.

I've never seen or heard of anyone doing it that way, not even in seminars. Distributions are tax free to the extent of stock basis, period.

I would be nervous if the letter says that because it might well mean you did not check the right box on the Efile Info form, payment tab. You can restore a letter with green curved arrow, or just manually edit it.

We just built a new computer and our IT guy had no problem getting a Win8 license for cheap. End of support date January 10, 2023.

I've seen others report this on the official forum, but it hasn't happened to me yet.

FMV of cash = cash

Especially for clients who don't even have brokerage 1099s until March 15th or K1s until April 1st.

The new 1040 would be a bow tie.

No imputed interest BS. No gain on repayment if loan basis used to deduct losses. Smaller bill from me. And we're talking about S corps, not C. I think I only have one C corp left.

They were never really loans, and I always catch them in the year they happen and record them as additional paid in capital.

Not the value, the cost basis.

Wow. That sounds like a question from the EA or CPA exam! I have no clue but look forward to some of tax heroes on this board to chime in.

I don't allow my one shareholder or two married shareholders to have loans payable. They usually don't rise to the level of a real loan to start with. I move it all to equity, because I'd rather just deal with stock basis.

Because the government doesn't want paper returns in duplex. ATX puts a lot of restrictions on the filing print packet.

Print the report to PDF and find some PDF tool that converts PDF to Excel. Nothing in ATX itself.

I don't think that's true. I always list all qualifying children whether any care was paid for them or not. Never had a problem.

Don't install the software, just manually install the drivers. If you need IT support to do this, get it, but in my experience windows usually finds the best driver. At least, windows 8 and above does.

Was your new computer off the shelf or did you have it built? Are there a lot of programs installed that you don't need? Are there a lot of programs starting at boot that you don't need running? Is there printer software installed? If yes, uninstall it. Does turning off your antivirus or other security software solve the printing problem? Are you running Win10 Pro or Home? I have seen a lot of people complaining about printing issues, but we only print to PDF and have never had an issue is 7 years.

Well, it was partly a joke 'plan', ha ha. But, before the big law changes, I rarely used it. Besides 2019 and 2018 rules are exactly the same, so unless someone asks for a projection and gives me estimated numbers for 2019, the 2019 column should be identical to 2018, except for kids turning 17, or taxpayers turning 65. And I'm not even sure ATX handles that automatically. If you are using it, I highly recommend setting preferences to not print zeros. It's easier to read and gives you room to type notes.

I don't plan on using it.

If you create the federal efile while there is no state return included, will it efile? We have to paper file most state fiduciary returns, but MD doesn't even want you to file if there's no tax due.

Sadly, it doesn't show on the efiled forms page. You have to open the return and look at the attached PDFs in the same place you attach them (Alt+e, t).

It's not required. Just the name. Do an error check before entering anything on the Auth Info form and you see what the required fields are on that form.