Discussion Archives:LLC (S-Corp) "Qualified" Dividend?

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RHINOCPA (talk|edits) said:

19 January 2009
Is a dividend from a Texas LLC a "Qualified Dividend" and only subject to the lower cap gains tax rates at the shareholder level? The LLC has two members (shareholders) and both receive a reasonable salary that is reported on W-2. Additionally the LLC is taxed as an S-Corp(1120-S)and approximately four years old (s-corp since inception). Please provide authoritative source references.

Kevinh5 (talk|edits) said:

19 January 2009
no - to both your question and your request

CATAXES (talk|edits) said:

19 January 2009
S Corp not double taxed. Distributions on K-1, not 1099 -Div

Blrgcpa (talk|edits) said:

19 January 2009
S corps DON'T pay dividends! If there is a profit in the AAA account, a tax free distribution can be make.

Jdugancpa (talk|edits) said:

19 January 2009
Blrg, S corps CAN pay qualified dividends if they have AE&P from before S status was elected.

Harry Boscoe (talk|edits) said:

19 January 2009
Or from a merger with a C corporation that brought AE&P into the merger - but don't ask me how that would work with an LLC-electing-to-be-taxed-as-an-association!

Kevinh5 (talk|edits) said:

19 January 2009
JDuganCPA, I've found that BlrgCPA rarely re-visits her prior posts, so if you are really writing this for her benefit (and not for Rhino's) I'd suggest making a comment on her User Talk page.

Pent-Up (talk|edits) said:

20 January 2009
BlrgCpa - come out of the woods and give Kevinh5 - a clear shot!

Trillium (talk|edits) said:

20 January 2009
A reminder for Pent-Up: Code of Conduct.

Pent-Up (talk|edits) said:

21 January 2009
Trill - chill out and enjoy the joust - I've got Kev at 5/2 for a clean knock out in the 5th - you see on this Board Kev, "floats like a butterfly but sting like a bee."

Mar (talk|edits) said:

22 January 2009
(edited by Trillium - duplicate consumer post has been removed - you can see their other post on the Consumer Forum in the Qualified Dividend discussion.)
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