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Understanding owner’s distributions and their tax implications is crucial for small business owners. In this video, Hannah addresses some excellent questions from our newsletter subscribers about this topic. Learn how distributions can affect your taxes and clarify common concerns to help you navigate these financial decisions effectively.

In this video you will find:
0:00 Introduction
0:30 Tax Implications of Distributions
1:15 Subscriber Questions: How are distributions taxed?
2:29 LLCs Taxed as SCorporations
2:55 First Question: Excess Distributions and Capital Gains Tax
3:20 Common Mistakes to Avoid
4:03 Second Question: Owner's Compensation vs. W2 Wages
4:42 Different Entity Types and Taxation
5:45 Tips for Managing Distributions
6:00 Sole Proprietors, Partnerships, and SCorporations
8:29 Basis Calculation
10:53 Negative Basis Situations
13:00 CCorporations and Double Taxation Explained


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Hannah Smolinski is a #CPA and the Founder of Clara CFO Group. Find out more about Clara CFO Group at https://claracfo.com/

Disclaimer: This video is intended for educational purposes and should not be taken as legal or tax advice. You should consult with your financial professionals about your unique financial situation before acting on anything discussed in these videos. Clara CFO Group, LLC is providing educational content to help small business owners become more aware of certain issues and topics, but we cannot give blanket advice to a broad audience.

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