Tax

Have a tax question? Ask a tax Expert

Ask an Expert,
Get an Answer ASAP!

This answer was rated:

Undistributed taxable income previously taxed. Have 3

shareholders with balances due to...
Undistributed taxable income previously taxed. Have 3 shareholders with balances due to them from previous years. Can it be paid all in one year to bring their amounts owing to zero until the next profit year is taxed?
Show More
Show Less
Ask Your Own Tax Question
Answered in 13 minutes by:
8/9/2017
Mark Taylor
Mark Taylor, Certified Public Accountant (CPA)
Category: Tax
Satisfied Customers: 2,442
Experience: Certified Public Accountant
Verified

Is this a C-Corporation that converted to a S-Corporation?

Ask Your Own Tax Question
Customer reply replied 11 months ago
No, S-Corp when established,n immediately filed form 2553

Where is the previously tax income coming from? Is it a CFC?

Ask Your Own Tax Question
Customer reply replied 11 months ago
Ordinary business income from 2012 - 2016. Reported to each shareholders per their percentage of ownership. No it is not a CFC.

Yes, it can be distributed to the shareholders as one lump sum. This would be non-taxable since the shareholders would have basis.

Ask Your Own Tax Question
Customer reply replied 11 months ago
okay, thank you.

It was my pleasure. I was happy to help.

Mark Taylor
Mark Taylor, Certified Public Accountant (CPA)
Category: Tax
Satisfied Customers: 2,442
Experience: Certified Public Accountant
Verified
Mark Taylor and 87 other Tax Specialists are ready to help you
Ask your own question now
Was this answer helpful?

How JustAnswer works

step-image
Describe your issueThe assistant will guide you
step-image
Chat 1:1 with a tax professionalLicensed Experts are available 24/7
step-image
100% satisfaction guaranteeGet all the answers you need
Ask Mark Taylor Your Own Question
Mark Taylor
Mark Taylor
Mark Taylor, Certified Public Accountant (CPA)
Category: Tax
Satisfied Customers: 2,442
2,442 Satisfied Customers
Experience: Certified Public Accountant

Mark Taylor is online now

A new question is answered every 9 seconds

How JustAnswer works:

  • Ask an ExpertExperts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional AnswerVia email, text message, or notification as you wait on our site. Ask follow up questions if you need to.
  • 100% Satisfaction GuaranteeRate the answer you receive.

JustAnswer in the News:

Ask-a-doc Web sites: If you've got a quick question, you can try to get an answer from sites that say they have various specialists on hand to give quick answers... Justanswer.com.
JustAnswer.com...has seen a spike since October in legal questions from readers about layoffs, unemployment and severance.
Web sites like justanswer.com/legal
...leave nothing to chance.
Traffic on JustAnswer rose 14 percent...and had nearly 400,000 page views in 30 days...inquiries related to stress, high blood pressure, drinking and heart pain jumped 33 percent.
Tory Johnson, GMA Workplace Contributor, discusses work-from-home jobs, such as JustAnswer in which verified Experts answer people’s questions.
I will tell you that...the things you have to go through to be an Expert are quite rigorous.

What Customers are Saying:

I really was impressed with the prompt response. Your expert was not only a tax expert, but a people expert!!! Her genuine and caring attitude came across in her response...

T.G.WMatteson, IL

I WON!!! I just wanted you to know that your original answer gave me the courage and confidence to go into yesterday's audit ready to fight.

BonnieChesnee, SC

Great service. Answered my complex tax question in detail and provided a lot of additional useful information for my specific situation.

JohnMinneapolis, MN

Excellent information, very quick reply. The experts really take the time to address your questions, it is well worth the fee, for the peace of mind they can provide you with.

OrvilleHesperia, California

Wonderful service, prompt, efficient, and accurate. Couldn't have asked for more. I cannot thank you enough for your help.

Mary C.Freshfield, Liverpool, UK

This expert is wonderful. They truly know what they are talking about, and they actually care about you. They really helped put my nerves at ease. Thank you so much!!!!

AlexLos Angeles, CA

Thank you for all your help. It is nice to know that this service is here for people like myself, who need answers fast and are not sure who to consult.

GPHesperia, CA

< Previous | Next >

Meet the Experts:

Wallstreet Esq.

Wallstreet Esq.

Tax Attorney

586 satisfied customers

10 years experience

Mark D

Mark D

Enrolled Agent

1,338 satisfied customers

MBA, EA, Specializing in Business and Individual Tax Returns and Issues

Richard

Richard

Tax Attorney

4,512 satisfied customers

29 years of experience as a tax, real estate, and business attorney.

PhillipsEsq.

PhillipsEsq.

Attorney-at-Law

59 satisfied customers

B.A., M.B.A, J.D.

Robin D.

Robin D.

Senior Tax Advisor 4

15,569 satisfied customers

15years with H & R Block. Divisional leader, Instructor

Megan C

Megan C

Certified Public Accountant (CPA)

8,655 satisfied customers

Licensed CPA, CFE, CMA, CGMA who teaches accounting courses at Master's Level

jgordosea

jgordosea

Enrolled Agent

2,885 satisfied customers

I've prepared all types of taxes since 1987.

< Previous | Next >

Related Tax Questions
I have an s-corp with distributions in excess of AAA, they
I have an s-corp with distributions in excess of AAA, they do have prior c-corp retained earnings, which will result in a taxable dividend for that portion of the distribution. How is this reported on… read more
keeperumiami
keeperumiami
Sr Financial & Tax Consultant
Bachelor\u0027s Degree
1 satisfied customers
A rental company operating as an llc disregarded entity,has
a rental company operating as an llc disregarded entity,has depreciation of 20 k a year and mortgage payments of 40k a year. half the mortgage is interest. one year the company made 80k gross, but had… read more
Lev
Lev
Retired
Bachelor\u0027s Degree Equivalent
27,134 satisfied customers
I am just reading a previous question on tax consequences of
Good morning. I am just reading a previous question on tax consequences of liquidating a C corporation. I have a situation with very similar circumstances. … read more
Dr. Fiona Chen
Dr. Fiona Chen
President
Ph.D.
1,172 satisfied customers
How is Shareholders Undistributed Taxable Income previously
How is Shareholders Undistributed Taxable Income previously taxed treated when the company is sold and there is still a balance in that account? Do you treat it as a non-business bad debt that is taxe… read more
Jonathan Tierney
Jonathan Tierney
MBA
295 satisfied customers
On a corporate return there is a section marked schedule
On a corporate return there is a section marked schedule M-2, analysis of accumulated adjustments,etc. What does this mean? and how is it accumulated, can the shareholders take this money out of the f… read more
keeperumiami
keeperumiami
Sr Financial & Tax Consultant
Bachelor\u0027s Degree
1 satisfied customers
LLC being treated as an “S” Corp purposes. The Net Profits
For an LLC being treated as an “S” Corp for tax purposes. The Net Profits for prior years should be shown as what on the Balance Sheet? Am I coorect int thinking that those Net Profits that are not pa… read more
Lane
Lane
JD, MBA, CFP, CRPS
Doctoral Degree
47 satisfied customers
Can a prior year's allocated loss in 2014 of $80,000
Can a prior year's allocated loss in 2014 of $80,000 from a Sub S corporation that was allocated proportionately to one of two shareholders be recaptured by the corporation in the following tax year (… read more
Lev
Lev
Retired
Bachelor\u0027s Degree Equivalent
27,134 satisfied customers
My S corp that will be terminating at the end of this year
My S corp that will be terminating at the end of this year has about $300,000 in the "Accumulated Adjustments, Other Adjustments and Shareholders Undistributed Taxable Income Previously Taxed" account… read more
Lane
Lane
JD, MBA, CFP, CRPS
Doctoral Degree
47 satisfied customers
I am preparing an 1120S return . The ending AAA account
I am preparing an 1120S return for 2014. The ending AAA account for 12/31/13 was minus $46,384. The profit for 2014 was $101,401 and there were donations of $15,556 and a distribution of $74,017 leavi… read more
Lane
Lane
JD, MBA, CFP, CRPS
Doctoral Degree
47 satisfied customers
i have an s corp, that was previously a c corp. the corp has
i have an s corp, that was previously a c corp. the corp has an intercompany payable to a commonly owned llc. The s-corp balance sheet is the payable, AAA and Shareholder's undistributed taxable incom… read more
BK-CPA
BK-CPA
Bachelor\u0027s Degree
919 satisfied customers
I am selling a business that is owned by my sub S corp. The sub S corp has undistributed
I am selling a business that is owned by my sub S corp. The sub S corp has undistributed taxable income previously taxed on form 1120s schedule M-2. Can I used that credit to offset capital gains on t… read more
Lev
Lev
Retired
Bachelor\u0027s Degree Equivalent
27,134 satisfied customers
TAXMANROG CPA ONLY S-Corporation 1120S Schedule M-2 (a)
TAXMANROG CPA ONLY S-Corporation 1120S Schedule M-2 (a) Accumulated Adjustments Account column Questions 1. What does the Balance at end of tax year represent and what is this column supposed to tell … read more
taxmanrog
taxmanrog
Master\u0027s Degree
996 satisfied customers
Accounting Question. A sus chapter S business has a net income
Accounting Question. A sus chapter S business has a net income of $50,000 and there are two corp officers each holding 50% of the business which would give a K-1 to each of them for $25,000, However t… read more
Lane
Lane
JD, MBA, CFP, CRPS
Doctoral Degree
47 satisfied customers
For an LLC elected that to be taxed as an S corp starting last
For an LLC elected that to be taxed as an S corp starting last year, where does the begining Retained Earnings get entered? (Accumulated Adjustments Account, Other Adjustments, Shareholders Undistribu… read more
S. Anderson
S. Anderson
31 satisfied customers
I own 100% shares of an S Corp in Illinois. In 2009 I started
I own 100% shares of an S Corp in Illinois. In 2009 I started the Corp with $100,000. In 2011 I paid myself a salary of $85,000. I then took a dividend payment of $100,000 since that was my basis I di… read more
Lev
Lev
Retired
Bachelor\u0027s Degree Equivalent
27,134 satisfied customers
Do I have a taxable income issue and basis adjustment issue
Do I have a taxable income issue and basis adjustment issue with the following: I am preparing a final year accrual basis tax returns for 2 retail operations: an S-corporation/1120S and an LLC/1065 fo… read more
Jax Tax
Jax Tax
Senior Tax Attorney
Master\u0027s Degree
1,394 satisfied customers
This is regarding Shareholder Distribution in a S Corp. If
This is regarding Shareholder Distribution in a S Corp. If a shareholder declares a distribution at the year-end closing and the company is not able to pay the shareholder the full amount of the decla… read more
L Dietz CPA
L Dietz CPA
Certified Public Accountant
Bachelor\u0027s Degree
31 satisfied customers
My accountant entered an amount for shareholders undistributed
My accountant entered an amount for shareholders' undistributed taxable income previously taxed. how is that calculated?… read more
BK-CPA
BK-CPA
Bachelor\u0027s Degree
919 satisfied customers
Disclaimer: Information in questions, answers, and other posts on this site ("Posts") comes from individual users, not JustAnswer; JustAnswer is not responsible for Posts. Posts are for general information, are not intended to substitute for informed professional advice (medical, legal, veterinary, financial, etc.), or to establish a professional-client relationship. The site and services are provided "as is" with no warranty or representations by JustAnswer regarding the qualifications of Experts. To see what credentials have been verified by a third-party service, please click on the "Verified" symbol in some Experts' profiles. JustAnswer is not intended or designed for EMERGENCY questions which should be directed immediately by telephone or in-person to qualified professionals.

Disclaimer: Information in questions, answers, and other posts on this site ("Posts") comes from individual users, not JustAnswer; JustAnswer is not responsible for Posts. Posts are for general information, are not intended to substitute for informed professional advice (medical, legal, veterinary, financial, etc.), or to establish a professional-client relationship. The site and services are provided "as is" with no warranty or representations by JustAnswer regarding the qualifications of Experts. To see what credentials have been verified by a third-party service, please click on the "Verified" symbol in some Experts' profiles. JustAnswer is not intended or designed for EMERGENCY questions which should be directed immediately by telephone or in-person to qualified professionals.

Show MoreShow Less

Ask Your Question

x