Alvin is the sole shareholder of an S corporation that earned $200,000 in 2019 and distributed $75,000 to him.Alvin must recognize $75,000 as income from the S corporation in 2019.

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Quizplus · Accepted Answer

Alvin must recognize the entire $200,000 as income from the S corporation in 2019 because S corporation income is passed through to shareholders and taxed on their personal income tax returns, regardless of the actual distribution amount.

Alvin Is the Sole Shareholder of an S Corporation That