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Looking for an example of how to complete schedule K-1 for

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a $3000 profit distribution from...
Looking for an example of how to complete schedule K-1 for a $3000 profit distribution from a S Corp to the 2 owners
Submitted: 8 years ago.Category: Tax
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3/2/2009
Tax Professional: RD, Certified Public Accountant (CPA) replied 8 years ago
RD
RD, Certified Public Accountant (CPA)
Category: Tax
Satisfied Customers: 8,784
Experience: CPA, MBA, Over 10 yrs of experience in tax planning and business consulting..
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To report the profit on the K-1

 

Presuming that the S Corp net pass thru income to stockholder is $3,000 than it will report these on Sch K-1 - Line 1 if this is ordinary income.

 

 

If the S Corp pays the profit as a distribution in cash than -

 

You will report the distribution on Form 1120S - page 3 - Line number 16d

 

and

 

on Sch K-1 for each shareholder on Line 16 with a code D.

 

The amount of distribution will be proportionate to their interest in the S Corp.

 

 

Let me know if you have any question.

 

Please note: This advice is provided with the understanding that all the relevant facts have been provided by you. Any change in facts might affect the advice given and hence may not be relied on in such cases. Nothing contained in this reply was intended or written to be used, can be used by any taxpayer, or may be relied upon or used by any taxpayer for the purposes of avoiding penalties that may be imposed on the taxpayer under the Internal Revenue Code of 1986, as amended.

 

RD
RD, Certified Public Accountant (CPA)
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