Fullerton, CA asked in Tax Law for California

Q: I am a partner with a company. They report annual distribution through K1 in my name. Can that become income to my S cor

If I start a S corp or that K1 should be issued in my S corp name, specifically?

Related Topics:
1 Lawyer Answer
D. Steven Yahnian
PREMIUM
D. Steven Yahnian
Answered
  • Tax Law Lawyer
  • Visalia, CA
  • Licensed in California

A: If your S Corporation becomes a partner in the partnership, then your S Corporation will report the income from the partnership as evidenced by K-1 issued to it by the Partnership. Then, you will report the income on your K-1 from the S Corporation because the partnership income passes through to the S Corporation and then the S Corporation income passes through is reported by its shareholder. By the way, California imposes a 1.5% net income tax on S Corporation net income.

Justia Ask a Lawyer is a forum for consumers to get answers to basic legal questions. Any information sent through Justia Ask a Lawyer is not secure and is done so on a non-confidential basis only.

The use of this website to ask questions or receive answers does not create an attorney–client relationship between you and Justia, or between you and any attorney who receives your information or responds to your questions, nor is it intended to create such a relationship. Additionally, no responses on this forum constitute legal advice, which must be tailored to the specific circumstances of each case. You should not act upon information provided in Justia Ask a Lawyer without seeking professional counsel from an attorney admitted or authorized to practice in your jurisdiction. Justia assumes no responsibility to any person who relies on information contained on or received through this site and disclaims all liability in respect to such information.

Justia cannot guarantee that the information on this website (including any legal information provided by an attorney through this service) is accurate, complete, or up-to-date. While we intend to make every attempt to keep the information on this site current, the owners of and contributors to this site make no claims, promises or guarantees about the accuracy, completeness or adequacy of the information contained in or linked to from this site.