re: K1 Tax Question

I’m not reading through all this so someone may have already given you a sufficient answer but here goes…

Assuming this is a S-Corp, You pay taxes on the net profit of the company whether you take distributions or not so the timing of the distributions is irrelevant.

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Our CPA calls it a draw. CPA pays 35% of said draw in estimated taxes. However, company didn’t profit in 2024. So do I get that tax money refunded since no members owe any taxes on company profits? I had no other personal source of income

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A draw is the same thing as a distribution, and you generally can’t take a draw if the LLC did not have a profit—would depend on the LLC agreement.

quote:

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Our CPA calls it a draw. CPA pays 35% of said draw in estimated taxes. However, company didn’t profit in 2024. So do I get that tax money refunded since no members owe any taxes on company profits? I had no other personal source of income

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If the CPA is actually mailing estimated tax vouchers on your behalf and the company had a loss, then theoretically, yes you would get that money refunded on your 1040. Can’t imagine that’s the case unless he handles your personal return too. Also that is assuming 1) you are active in the company and can deduct the loss and 2) you don’t have other sources of income that have not been “paid in” appropriately.

Edit: if the CPA withheld money on your distribution and no one else got a distribution then CPA may be treating your draw as a guaranteed payment which is taxable income. If that is the case, that $100,000 you got will appear in box 4 of your k-1. You should clarify with the CPA.