S-Corp tax question I have an LLC that is taxed as an S-Corporation. There are 2 shareholders, my father (2.1%) and me(97.9%).
I own a commercial fishing boat that I have another individual (non-shareholder) operate.
He does almost all the work (1000+ hours per year) and all the money goes through the LLC.
I do not materially participate according to the guidelines, neither does my father (He does no work at all).
I work about 240 hours per year for which the LLC pays me a wage. I have a W2 for the wage I pay myself.
During the year, I take profits out of the business and at the end of the year, there are still more profits to take.
So last year I was pulling out about 3000 per month, and at the end of the year there was still about 12,000 profit left in the business account.
How do I record this on my schedule K1 (Form 1120S)? |