Diane Posted February 23, 2008 Report Posted February 23, 2008 Cash distributions out of previously taxed income should reduce the PA AAA account (per their instructions). If I put the distribution on Line 7 of AAA account it flows to Line 14 of the RK-1. The PA 40 return on line 4 says to include Line 1 plus Line 14 of the RK-1 on that line. But the cash distribution is not taxable. What am I missing here? This S Corp has always been an S corp. Quote
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