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2 replies

Rustler
Dec 31, 2022 12:41 PM UTC

before the fiscal year end, yes

Rainflurry
Dec 31, 2022 1:34 PM UTC

@usertravis-ritz-4rin 

 

As long as you have adequate basis, S-Corp distributions are treated as a tax-free return on your basis and, therefore, have no impact on your taxable income so it makes no difference when you take them.  If you are making a distribution in excess of your basis, it makes sense to wait until after Dec. 31 because that is treated as a sale of your stock and results in capital gain.