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dividends paid to officers of tightly held corp.

11/4/09 1:37 PM,   Viewed by asker 11/5/09 9:29 PM
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how or where do i enter dividends paid to officers of a tightly held corp. just 3 family members own the corp. thanks. do i just lop the dividends together with their salaries and enter it in officers compensation? thanks, or do use schd. c?

 
 
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11/4/09 1:48 PM

Schedule M-2 Line 5a.  Schedule C is for dividends received.

In God we trust - all others pay cash
 
 
 
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11/4/09 4:09 PM

S Corp or C Corp?  Makes a huge difference.

Outside of a dog, a book is man's best friend.
Inside of a dog, it's too dark to read.
~Groucho Marx
 
 
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11/4/09 9:43 PM

I probably have never seen a corp. held together so close to the vest as your tightly held corp. Most of my clients use closely held corps. ;-)

As it gets closer to tax season, I wish I had some hair to pull out.
 
 
 
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11/5/09 5:32 PM

Now that I have time to seriously answer your question, why would you lump dividends with salary? Why would you use Schedule C for dividends, or for salary? What am I missing here?

As it gets closer to tax season, I wish I had some hair to pull out.
 
 
 
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11/5/09 9:28 PM

So, i should just enter salaries under comp of officers and where would the dividends they took be entered. thanks.

 
 
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11/6/09 11:03 AM

Please look at my previous post.  This question cannot be answered unless we know whether you're talking about an S Corp or a C Corp.  Probably it can't be answered anyway, but at least give us the relevant data.

Outside of a dog, a book is man's best friend.
Inside of a dog, it's too dark to read.
~Groucho Marx
 
 
 
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11/6/09 11:26 AM

If it is a C corp I believe I already gave the answer above.

In God we trust - all others pay cash
 
 
 
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11/6/09 12:46 PM

In case you are not really sure, dividends from a C corp. are distributions of profits(retained earnings), previously taxed to the corp. and taxable again to the shareholders as dividend income.

S corp. distributions are generally distributions of profits(retained earnings, also called AAA), previously taxed to the shareholders and not taxable again to the shareholders.

If you are not sure how to handle this may I suggest taking a class or finding a mentor.
 

As it gets closer to tax season, I wish I had some hair to pull out.
 
 
 
 
 
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