[canfinishthis2013]

As S corp, why is dividend income from investment should be separately stated from business income?

FAR PASSED Feb 28, 2013
AUD Oct 27,2013
REG Jan 7,2014
BEC Nov 15,2013

[musicamor]

Because it is taxed differently than normal income. Remember the exclusion you're allowed depending upon the amount of ownership in the entity? When trying to determine what is seperately stated on an S-Corp tax return, think of “taxability.” If different tax rules apply, then it's seperately stated.

Texas CPA - licensed in 2012!!!

[canfinishthis2013]

@musicamor, thanks a lot. thank you .congra. you passed it sitting in Texas.

FAR PASSED Feb 28, 2013
AUD Oct 27,2013
REG Jan 7,2014
BEC Nov 15,2013

[KiwiCPA]

Moonchen – you may also want to think of where the income and deductions ultimately go.

An S-Corp is a flow through entity i.e. flows through to the personal return. Among other things, dividends, interest, ordinary business income and charitable contributions are stated separately on the S-corp return and K-1, as they go to different areas on the 1040….

Reg 82; FAR 75; AUD 91; BEC 11/9/13; result due - 11/22/13

[canfinishthis2013]

@KiwiCPA, I understand now,I have another question why should LTCG be included in AAA, as S corp?

FAR PASSED Feb 28, 2013
AUD Oct 27,2013
REG Jan 7,2014
BEC Nov 15,2013

[Author]

Replies