How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site. Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
Ask Wallstreet Esq. Your Own Question
Wallstreet Esq.
Wallstreet Esq., Tax Attorney
Category: Tax
Satisfied Customers: 586
Experience:  10 years experience
16356563
Type Your Tax Question Here...
Wallstreet Esq. is online now
A new question is answered every 9 seconds

Not familiar with instructions on form 1120 schedule k line

Customer Question

not familiar with instructions on form 1120 schedule k line 13.
JA: The Accountant will know how to help. Please tell me more, so we can help you best.
Customer: is there a minimum amount for cash distributions?
JA: Is there anything else important you think the Accountant should know?
Customer: If you list an amount such as 5,000.00 dollars how does this effect the personal
Submitted: 1 year ago.
Category: Tax
Expert:  ABC Accounting Group replied 1 year ago.

It is the amount distribution by the Corp to the Stockholders. I will answer your other question in 3 minutes. Thanks.

Expert:  ABC Accounting Group replied 1 year ago.

Hi. Are you looking at the 1120 or 1120-S? Thank you.

Expert:  ABC Accounting Group replied 1 year ago.

On the cash distributions - if the distribution is made from the corporation’s earnings and profits, it is taxed to the shareholder as a dividend. The portion of the distribution that is not considered a dividend is applied first to reduce the shareholder’s basis in the corporation’s stock and any remaining amount is a gain/loss.