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  • S-corp and HSA

    From Stuart O. Bronstein@21:1/5 to All on Wed May 24 09:26:35 2023
    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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  • From Stuart O. Bronstein@21:1/5 to Alan on Thu May 25 12:36:29 2023
    Alan <tempuser@vacationmail.com> 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


    --
    This email has been checked for viruses by AVG antivirus software.
    www.avg.com

    --
    << ------------------------------------------------------- >>
    << 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)
  • From Alan@21:1/5 to Stuart O. Bronstein on Thu May 25 12:22:28 2023
    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)