Shareholders in an S corporation report their share of items of income, gain, loss, etc. that is passed through as reported on Schedule K-1. The corporation’s net income from operations is ordinary income to shareholders. The Tax Court told shareholders that merely issuing Form 1099-DIV and reporting the income on this form does not convert the income into qualified dividends.
New blog today! 4 Steps to a Paycheck Protection Program Loan
Alert: Follow coronavirus-related federal tax changes through the IRS’ Coronavirus Tax Relief center.
