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usertravis-ritz-4rin
Level 1

S corp distribution....does it have to happen before year end

 
2 Comments 2
Rustler
Level 15

S corp distribution....does it have to happen before year end

before the fiscal year end, yes

Rainflurry
Level 15

S corp distribution....does it have to happen before year end

@usertravis-ritz-4rin 

 

As long as you have adequate basis, S-Corp distributions are treated as a tax-free return on your basis and, therefore, have no impact on your taxable income so it makes no difference when you take them.  If you are making a distribution in excess of your basis, it makes sense to wait until after Dec. 31 because that is treated as a sale of your stock and results in capital gain.

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