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Barbara, Enrolled Agent
Category: Tax
Satisfied Customers: 3367
Experience:  18+ years of experience in tax preparation; 25+ years of experience as a real estate/corporate paralegal.
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When can stockholder take per taxed funds out of a sub s

Customer Question

when can stockholder take per taxed funds out of a sub s
Submitted: 2 years ago.
Category: Tax
Expert:  Barbara replied 2 years ago.
Welcome to Just Answer. My name is ***** ***** it will be my pleasure to assist you with your tax question today.
As you probably know, income earned by S corporations is untaxed at the corporate level, but often passes through to the shareholder or shareholders, where it is subject to taxes. The IRS does not allow S corporations to retain pretax income -- such as for investment -- but it does allow you to make legitimate purchases that become corporate expenses, reducing taxable income at the personal level. You can also reclassify income in ways that reduce the substantial taxes for Medicare and Social Security, or FICA, and for unemployment, or FUTA.
The following links contain information you may find helpful:
Please let me know if I can assist you further.
Thank you and best regards,
Expert:  Barbara replied 2 years ago.
I see you are now offline. If you have any other questions or concerns, please come back to me here at your convenience, and I will be happy to assist you.
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Best regards,

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