re: S-Corp Question

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Distribute earnings through dividends assuming you are a shareholder

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S corporation distributions are not taxed as dividends to the shareholder unles the company operated as a C corporation and had undistributed earnings and profits. The OP wrote that the business has been an S corporation since inception, so it has no accumulated E&P to distribute. All of ht eS corporation income is taxable to the shareholders whether or not any dsitributions are made to the shareholders.

More information is necessary to determine how to minimize the tax consequences of $3,000-$4,000 of rental revenue per month to the shareholders.