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1120S

S corporation dividends vs. distributions vs. wages

I am establishing the accounting for two companies and have some questions regarding which way to best pay the principle owner for each entity. They both want to have a base (?pay, dividend or distribution?) of $78,000 annually. I do not know which to recommend for the minimum of taxes to be taken out and how. Should it go through the normal payroll system? Do we pay themselves out directly and claim it on a 1099 or in some other way? Is the entry into the general ledger an equity or an expense, or something else? Greg gofwallace@yahoo.com

Calculating Salary on the 1120S and Self Employment

Hi Linda,

I love your site - it is VERY helpful.

Reporting of 1099 income for S Corp

Hi Linda,

Quick question. I have a real estate company that is an S Corp. I paid out commission to an independent contractor as 1099 income. Where do I report this 1099 income on my 1120S? Thanks,

Steve

s corp gross revenues from P&L cash do NOT match gross revenues in 1120s

In the middle of an audit, it was found that the P&L cash basis of a past year did not match the gross revenues (1st entry) in a submitted 1120s. Is this normal?

Company is set-up for accrual accounting, but cash-basis for corporate income tax purposes.

In short of asking former accountant, I would like to know whether the differences are normal.

Report "Loan from Shareholder" or "capital contribution" on 1120S

Hi, Linda,
On 1120S, schedule K 16-e will report "Repayment of loans from shareholders". But I can't

find anywhere to report "Loan from Shareholder". Similarlly K16-d reports "Property

distributions", but where to report capital contribution?

Another question is "Basis", which is equal to basic= contribtion + income - distribution

- loss. And I saw it mentioned many times on many discussion. But on 1120S, I didn't see

any calcuation to indicate the basis on the end of year, where is it on the tax form??

Thanks in advance, Linda!

Larry

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