USA Affect of S Corp Shares on Personal Tax

[scorpshares]

I have the opportunity to acquire some shares in a startup S Corporation. If I decide to do this how will it affect my personal taxes if I'm not an employee-shareholder, but just a shareholder? Also, if I receive no dividends for the year, but the company makes a profit am I still liable to include this as a gain on my personal taxes?

 

[The Finance Writer]

You owe personal income tax on your share of the company's profit. You also owe tax on your share of the company's capital gains. Subject to potential limitations, you receive a tax benefit for your share of the company's losses and credits. Most notably, you are a passive investor subject to limitation on deduction of passive activity loss.