Welcome Guest. Register Now!  



Reply
 
LinkBack Thread Tools Search this Thread Display Modes
  #1 (permalink)  
Old 02-15-2010, 11:10 PM
Junior Member
 
Join Date: Feb 2010
Posts: 1
size of C Corp declared cash dividend

I am sole stock holder of a very small C Corp. that for the past few years has only shown income of a few thousand dollars from interest/dividends on retained earnings invested. I have taken officer compensation(salary) every year equal to approximately the interest/dividend income. Corporation has retained earnings of approx. $90,000. which accumulated many years ago when it was active. I would like to dissolve the Corporation. my question: can I declare a cash dividend equal to the amount in retained earnings? or do I have to withdraw as a salary instead? is it a red flag to drain retained earnings via dividend with 0 officer compensation on the final form 1120. thanking you in advance.



Digg this Post!Add Post to del.icio.usBookmark Post in TechnoratiFurl this Post!Reddit! stumble!bookmark in google!Share on Facebook!
Reply With Quote
Ads
Reply



Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

vB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
Proof of Economic Loss in Declared Disaster Area? Benny2009 Miscellaneous 0 02-11-2010 12:56 AM
Employee cash value life insurance paid for by 'er Winterdawg Life Insurance 0 02-20-2009 01:29 PM
Interest due Shareholder if C Corp is cash basis maslarcpa C-Corporation 1 02-17-2009 11:24 PM
What's the tax consequence of borrowing the cash value from a Life Insurance Policy? cstatham Life Insurance 0 06-04-2008 02:56 AM
What are the rules for Non-Cash Donations not involving vehicles? Cooper Miscellaneous 1 02-29-2008 01:13 AM

Follow us on Facebook Follow us on Twitter Google Buzz Rss Feeds

» Categories
 
Individual
 » Income
 » IRA/Sep
 » Medical
 
Corporations
 » Payroll
 
Forum for CPAs
 
Financial Planning
 
 
 

» Recent Tax Q&A
No Threads to Display.