I am new to this taxes thing, and have found general accounting to be pretty straight forward, but as to the income versus basis stuff I get pretty confused.

I put up about 180k to get my business going, and last year I claimed a loss of about 42k leaving a basis of 138k, correct?

This year we did much better and I took distributions of about 77k.

My question is how this is taxed, since I see that in essence I am simply removing my own money, yet the company did in fact produce profit?...

I just don't want to pay a bunch of taxes because that would kick my a**, but I also don't want to be shady and get myself in trouble. So how do I show this accurately and in the correct areas so that at least I am being clear.

Thanks so much for your help!