Cash from an S corporation can be treated as tax-free basis recovery, dividend income or capital gain. Distributions in excess of basis are taxable, and…

Cash from an S corporation can be treated as tax-free basis recovery, dividend income or capital gain. Distributions in excess of basis are taxable, and go unnoticed until the tax return is prepared - sometimes leading to an unpleasant client conversation.

Today's Daily Tax Planning Strategy explains the planning involved with S corporation distribution planning.

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