An S Corporation needs to carefully monitor distributions to shareholders to be certain that there are no disproportionate distributions.  Failure to make distributions in proportion to ownership interests can void the S Corp election.   Distributions to shareholders must be made in proportion to the ownership interests of the shareholders or a disproportionate distribution has occurred.  [...]

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Knowing one’s cost basis in an S corporation is a vital issue for most owners of S corporations.  However, to many such shareholders, basis is not understood and not known. Part of the confusion arises from the fact that S corporations, LLC’s, and partnerships are faced with two different basis numbers – inside basis and [...]

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