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S CORP DISTRIBUTIONS IN EXCESS OF BASIS

  • 1.  S CORP DISTRIBUTIONS IN EXCESS OF BASIS

    Bronze Most Valuable Member
    Posted 20 days ago
    Is the calculation as to whether an S corp has distributions in excess of basis measured only at year end. For example if an S corp takes a distribution mid-year when there is plenty of AAA and at year end accrues a large pension deduction which is paid in the following year that results in significantly reducing AAA . Under such circumstances is the distribution taxable?

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    Gabriel Bentovim
    HOFFMAN & BENTOVIM, CPAs PC
    Commack NY
    631-499-1500
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  • 2.  RE: S CORP DISTRIBUTIONS IN EXCESS OF BASIS

    Posted 2 days ago
      |   view attached
    @Gabriel Bentovim
    Hi Gabriel:

    I am attaching a section from the BNA portfolios on S Corp distributions.  There are specific "ordering" rules ​for the calculation of S corp basis and how distributions affect basis.  My guess from your note is you probably won't have a problem but I recommend you read it carefully and walk thru an S Corporation basis worksheet to make sure.

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    Steven Miller CPA
    STEVEN E. MILLER, CPA, PC
    Dallas TX
    214.361.1131
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    Attachment(s)



  • 3.  RE: S CORP DISTRIBUTIONS IN EXCESS OF BASIS

    Bronze Most Valuable Member
    Posted 17 hours ago
    Thanks Steven

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    Gabriel Bentovim
    HOFFMAN & BENTOVIM, CPAs PC
    Commack NY
    631-499-1500
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