WITAXLADY Posted March 10, 2023 Report Share Posted March 10, 2023 Shareholder has plenty of basis, s corp When I put the distribution in from 16D , the refund drops $20,000 Why - the tax was paid on the flow thru from the K-1 income? I cannot see any changes on the Sch D, 8582, 7203? I do see a $2,000 AMT tax What am I missing, please? Thx d Quote Link to comment Share on other sites More sharing options...
WITAXLADY Posted March 10, 2023 Author Report Share Posted March 10, 2023 found it - it was $14,000 difference - $2,000 AMT and took away the $12,000 8801 credit - Can someone please explain that? Thank you D Quote Link to comment Share on other sites More sharing options...
jklcpa Posted March 10, 2023 Report Share Posted March 10, 2023 13 hours ago, WITAXLADY said: found it - it was $14,000 difference - $2,000 AMT and took away the $12,000 8801 credit - Can someone please explain that? 8801 AMT credit is not allowed in years in which the taxpayer is paying AMT. As to your first question, check the data to see if the taxpayer's basis differs for AMT compared to the basis for regular tax purposes. 1 Quote Link to comment Share on other sites More sharing options...
WITAXLADY Posted March 10, 2023 Author Report Share Posted March 10, 2023 I knew that about the 8801 - I am just wondering - why if he is taxed as a K-1/the k-1 income , why do the distributions get counted again and take away all that refund? Thx d Quote Link to comment Share on other sites More sharing options...
Abby Normal Posted March 10, 2023 Report Share Posted March 10, 2023 46 minutes ago, WITAXLADY said: I knew that about the 8801 - I am just wondering - why if he is taxed as a K-1/the k-1 income , why do the distributions get counted again and take away all that refund? Thx d Sounds like time for a side by side, line by line comparison. Distributions with ample basis should not change anything but basis, but as has already been suggested, perhaps your AMT basis worksheet is wrong. 2 Quote Link to comment Share on other sites More sharing options...
WITAXLADY Posted March 10, 2023 Author Report Share Posted March 10, 2023 will do! Quote Link to comment Share on other sites More sharing options...
Lee B Posted March 10, 2023 Report Share Posted March 10, 2023 Perhaps your client's outside basis isn't accurately reflected in their tax return. Quote Link to comment Share on other sites More sharing options...
mircpa Posted March 11, 2023 Report Share Posted March 11, 2023 @WITAXLADY Your answer might lie in basis. It could be that 7203 does not have correct basis from past years. 2 Quote Link to comment Share on other sites More sharing options...
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