OP has an S-corporation. He gets health insurance through the
marketplace. Every year he reports his gross income to determine the
level of subsidy he receives.

Now he wants to withdraw money from the corporation's accumulated
adjustments account, and wonders whether he has to report that as
additional income. My guess is not, because he's already reported it
in the past years when that money was accumulated.

Am I missing something?

Thanks for any insight.

--
Stu
http://DownToEarthLawyer.com


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Alan <[email protected]> wrote:

On Wednesday, May 24, 2023 at 6:28:23 AM UTC-7, Stuart O.
Bronstein wrote:

OP has an S-corporation. He gets health insurance through the
marketplace. Every year he reports his gross income to determine
the level of subsidy he receives.

Now he wants to withdraw money from the corporation's accumulated
adjustments account, and wonders whether he has to report that as
additional income. My guess is not, because he's already reported
it in the past years when that money was accumulated.

Am I missing something?

Thanks for any insight.

Based on the facts presented, your assumption is correct. There
might only be an issue if the distribution exceeded the AAA
balance.

Thanks Alan!


--
Stu
http://DownToEarthLawyer.com


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This email has been checked for viruses by AVG antivirus software.
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--
<< ------------------------------------------------------- >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2011) - All rights reserved. >>
<< ------------------------------------------------------- >>

--- SoupGate-Win32 v1.05
* Origin: fsxNet Usenet Gateway (21:1/5)

On Wednesday, May 24, 2023 at 6:28:23 AM UTC-7, Stuart O. Bronstein wrote:

OP has an S-corporation. He gets health insurance through the
marketplace. Every year he reports his gross income to determine the
level of subsidy he receives.

Now he wants to withdraw money from the corporation's accumulated
adjustments account, and wonders whether he has to report that as
additional income. My guess is not, because he's already reported it
in the past years when that money was accumulated.

Am I missing something?

Thanks for any insight.

--
Stu
http://DownToEarthLawyer.com

Based on the facts presented, your assumption is correct. There might only be an issue if the distribution exceeded the AAA balance.

--
<< ------------------------------------------------------- >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2011) - All rights reserved. >>
<< ------------------------------------------------------- >>

--- SoupGate-Win32 v1.05
* Origin: fsxNet Usenet Gateway (21:1/5)