Archive for the ‘S Corporation’ Category

Funding an S-Corp from an S-Corp: Distribute, Don’t Loan

Thursday, June 7th, 2012

Joe Kristan has an excellent update that is a must-read for owners of multiple S-Corporations. The Tax Court validated a traditional S-Corporation planning technique: You can distribute basis from one S-Corporation to another. There are some caveats (aren’t there always?), and the paperwork is vital, but this is a technique that can work.