| “ I want to take a cash withdraw to brokerage firm. How do I treat it on the 1120S form? ”---> Many folks treat their S-Corp as a sole proprietorship( I am not sure if this is yyour case), which can cause headaches if audited. Any cash you withdraw from the corporation is a distribution, which lowers your cost basis in the stock you hold. If your cost basis reaches $0, then any additional distributions of cash and/or property are taxed as capital gains. If you receive net loss on your K-1 and as long as the loss exceeds your basis in the S-corporation's stock, then the loss is disallowed on your personal 1040 until your basis in the stock is increased.
“Is there creative ways to not have it count as taxable income, especially since had years of loss?”---> I guess in principle, although not for everyone, there are a number of approaches that you, as a S-Corp owner, can use to reduce the tax bite from your earnings( if you have); ypu need to be sure to charge all your legitimate business expenses to the corporation. If you spend cash on company business (or make charges to a personal credit card), be sure to file an expense report (or similar written document) with receipts for reimbursement by the corporation. As you can see, personally paid expenses cannot be deducted by the corporation unless they are reimbursed. In general, S-corp loss, a non-deductible loss, will be disallowed. The loss does not disappear, instead the loss is carried forward to next year. If you have basis in the stock, then the loss may be claimed. The loss carries forward year by year until you increases your basis in the stock above zero.So, I guess you are taxed on your salary income and receive no benefit in the current year for your business loss ,depending on your capital contributions.
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