Would a distribution from an LLC to a corporate member be included in the corporate member’s net income if it constituted a “return of capital"?

Jun 23, 2010
A distribution to a member, up to the amount of the member’s share of earnings for that period plus the member‘s share of accumulated earnings from prior periods, is a distribution of earnings and included in book income. Any distribution above that amount is a return of capital excluded from book income. If the distribution is from a properly documented sale of an ownership interest, the distribution is a return of capital.
Pennsylvania CPA Journal

Read the latest from the Pennsylvania CPA Journal online or via the mobile app and digital edition.

Read More

CPA Now

Get the latest info on professional trends, management, and leadership skills on CPA Now.

Read More

PICPA 2019 Premier Sponsors

Platinum Sponsor

Gallagher Bollinger Logo CPACharge

Gold Sponsor

Paychex logo

Bronze Sponsor

payroc-logo-hi-res
Capstan Logo

Interested in becoming a sponsor? Contact Kelli Comegys for packages and opportunities.