Joe owns 75% and Ethan owns 25% of JH Corporation, a calendar year taxpayer. JH makes a $600,000 distribution to Joe on April 1 and a $200,000 distribution to Ethan on May 1. JH's current E & P is $120,000 and its accumulated E & P is $500,000? What are the tax implications of the distributions to Joe and Ethan? 

Answer rating: 100% (QA)

JH Corporations distributions to Joe and Ethan are considered taxable dividends to the extent of the ... View the full answer