Tracking profit distribution tax liabilities

david-saunders-p · ‎September 28, 2023

Hey All. Quick one for you.. hopefully.. I'm interested in trying to track tax liabilities for profit distributions I take throughout the year. I can create a liability account, but not sure what I should do to record the estimated tax liability in terms of debits/credits. Any help would be appreciated.

Rustler · ‎September 30, 2023

Profit distributions mean you are a shareholder in a chapter S corporation.
Regardless though, other than a C-corporation.

,owners/shareholders are taxed on the company share of profits, NOT distributions.

And tax liability is a personal financial event so it should NOT be included in the business accounting records

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Tracking profit distribution tax liabilities

Tracking profit distribution tax liabilities

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