Does paying dividends reduce current year earnings? If so, where do you deduct it on the return.
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Dividends do not reduce earnings. I would suggest that you do not understand S corps.
You got that right. However, had a client trying to tell me he had been doing that for many years. Will do some study and research. Thanks.
>>he had been doing that for many years<<
Just look on last year's return to see how he handled it. Also look at the signature and ask him why that tax preparer isn't doing it any more.
S corps don't pay dividends. They pay tax free distributions if the AAA account has a credit balance.
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