Is profit distribution taxable to partners ? I have started a SCorp in the year 2013, have made some profit. my CPA have filed the 1120S and issued the K1 forms to the share holders. I understand that the net profits are taxed to the individual on there 1040, all the partners have filed there personal taxes and pad the tax for there profit share
Now Here is my question, if i distribute the profit to the partners in 2014, is the profit distribution amount treated as income for the year 2014 to the partners? will it get taxed in 2014 ? |