T
techiegirl
Customer is going from Sche C to S-Corp. Husband and wife
are both shareholders. He has taken distributions of $10,000
and wife has distributions of $5000. They contributed
property from the Sche C (transfer of assets) of around
$40,000.
Will the $15,000 in distributions be non-taxable because
they have a shareholder basis of $40,000? The net income
will be around $7,000 after depreciation.
Thank you.
are both shareholders. He has taken distributions of $10,000
and wife has distributions of $5000. They contributed
property from the Sche C (transfer of assets) of around
$40,000.
Will the $15,000 in distributions be non-taxable because
they have a shareholder basis of $40,000? The net income
will be around $7,000 after depreciation.
Thank you.