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david-saunders-p
Level 1
posted
‎September 28, 2023 09:10 AM
last updated ‎September 28, 2023 9:10 AM

Tracking profit distribution tax liabilities

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.

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1 Comment 1
Rustler
Level 15
‎September 30, 2023 05:49 AM

Tracking profit distribution tax liabilities

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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