Are Owner's Draws Taxable? Common Questions Answered!

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  • Опубліковано 27 січ 2025

КОМЕНТАРІ • 34

  • @bradthomas5856
    @bradthomas5856 7 місяців тому +10

    Hannah, your channel does a real service to the public. Good info!

    • @ClaraCFO
      @ClaraCFO  7 місяців тому

      Thanks! I appreciate that statement! I sure hope so! That’s the goal 🙌

  • @AngelBooksForYou
    @AngelBooksForYou 7 місяців тому +5

    Your videos are the best. Thank you for doing them. They are very informative and I have learned a lot from you. Thanks for being vulnerable too. Nobody is perfect!

    • @ClaraCFO
      @ClaraCFO  7 місяців тому +1

      Ain't that the truth! Thanks for watching and being here!

  • @juliestarkel2561
    @juliestarkel2561 7 місяців тому +2

    Thanks so much for your videos Hannah! So so helpful for business owners who 'do it all' and don't have a finance team! And on a different note, I should have been an accountant.

    • @ClaraCFO
      @ClaraCFO  7 місяців тому

      Ha! It's never too late Julie!!

  • @AshMalik
    @AshMalik 4 місяці тому +2

    Hi Hannah, please create a video which addresses a Shareholder providing a loan to the S-corp, how to accurately document that with a repayment plan and AFR noted, how to enter this on QuickBooks, and then when repaying the loan, how will it be withdrawn (i.e. shareholder's distribution), and how it will be taxed. I haven't found any such video that explains this process in a comprehensive and comprehensible way. Majority of them discuss this as being an option, but not necessarily how to utilize this option in an S-corp. Thank you.

  • @MiDiosPoderoso
    @MiDiosPoderoso 7 місяців тому +2

    Thank You😊

    • @ClaraCFO
      @ClaraCFO  7 місяців тому

      Thanks for watching!

  • @debrathompson554
    @debrathompson554 7 місяців тому +2

    Please talk about a business owner having an S-Corp and how it flows onto the personal tax return and how the owners tax bracket is how the S-Corp is taxed, how to reduce tax bracket

    • @ClaraCFO
      @ClaraCFO  7 місяців тому

      Well, you will be in a lower tax bracket if you make less money, but that's not what I generally recommend :) But I think I get the gist of what you are trying to say! I am not a tax CPA, so I won't do many videos about tax strategy. But I can explain some concepts!

  • @savvyAKAgyrl
    @savvyAKAgyrl 5 місяців тому

    I just found your channel and this video was extremely helpful! Thank you! I will check out more of your videos.

    • @ClaraCFO
      @ClaraCFO  5 місяців тому

      Awesome! Thank you!

  • @MATCHMYSCRIPT
    @MATCHMYSCRIPT 9 днів тому

    ON WHAT SCHEDULE C LINE, DO I PUT SINGLE MEMBER LLC CONTRIBUTIONS?

  • @chrisallen9303
    @chrisallen9303 7 місяців тому

    You do such a great job, you learn, we all learn ;) Thank you for everything.

  • @proposability
    @proposability 7 місяців тому

    Can you please provide insight into how to analyze the owners equity section to determine how much money the owner can take out of the business both from a current year and from prior year perspective? Should owners be taking draws every year? Would love to hear you speak on this

  • @doreenmacneil8011
    @doreenmacneil8011 3 місяці тому

    Is your advice only for viewers in USA businesses?

    • @ClaraCFO
      @ClaraCFO  3 місяці тому

      Some concepts would be good for businesses wherever, but I speak directly to US businesses. This video is specifically for US businesses.

  • @sethabathabamorganramaili2783
    @sethabathabamorganramaili2783 7 місяців тому

    Hi Clara
    I am also following your videos very well and loved 😍. Please try to include us in South Africa where we have different entity types than the one you refer. 😢

    • @sethabathabamorganramaili2783
      @sethabathabamorganramaili2783 7 місяців тому

      Cima enrolled with a start-up company

    • @ClaraCFO
      @ClaraCFO  7 місяців тому

      Oh yes - this only applies to US companies! I hope someone in SA will do videos like this to help SA businesses!

  • @mike2959
    @mike2959 Місяць тому

    I’m confused on “basis”.
    It’s owners contribution right?
    So if I put 100K of my personal funds to start off…
    The following year by company had a 100K profit but I took 50K distribution, so what’s my basis?
    And…by year 7 should my basis be like ZERO if the company profit is strong and I initially didn’t “invest” the 100K but I loaned the 100K….

  • @Ockv74
    @Ockv74 7 місяців тому +2

    ❤❤❤

  • @stewartsnacks
    @stewartsnacks 7 місяців тому

    Awesome videos ❤

  • @SaquibHasan-si7pe
    @SaquibHasan-si7pe 7 місяців тому

    Hi Clara
    can you answer my question relating to payroll

    • @ClaraCFO
      @ClaraCFO  7 місяців тому

      what question?

    • @SaquibHasan-si7pe
      @SaquibHasan-si7pe 7 місяців тому

      @@ClaraCFO I am using QBO Advanced and recently acquired ADP for Payroll. Both have been connected. Now my concerned is related to Chart of Accounts mapping. My question is that a single expense account named Payroll Tax Expense in QBO is sufficient for all four types of Employer Taxes (SUTA, FUTA, FICA SS, FICA Medicare) in ADP or we need to make 4 separate expense accounts in QBO as the granular detail & reports will be available on ADP. Similar is the case with Employee taxes withheld, is a Single Tax Payroll Liability account in QBO enough for Employee taxes (FI, SI, FICA SS, FICA Medicare) in ADP. Now if we create separate accounts there will be numerous bank feeds to be matched every time payroll is run, also the details will always be fetched from ADP so what's is your expert advise on this? should a single account be linked to ADP or multiple accounts need to be setup.

  • @unikovida6645
    @unikovida6645 7 місяців тому +2

    Open communication
    Radical transparency
    Harmonious like minded group

  • @relaxedclub9425
    @relaxedclub9425 7 місяців тому +2

    if she made 50,000 profit, & withdrew 60,000, how was that possible? Where did the 10,000 come from?

    • @RedshitDesert
      @RedshitDesert 7 місяців тому +1

      Did your business have any loans? You could have excess cash from a credit card loan for example

    • @ClaraCFO
      @ClaraCFO  7 місяців тому +2

      It was most likely cash that was already in the business from prior year earnings. It could also have been from borrowed funds.

    • @proposability
      @proposability 7 місяців тому +1

      @@ClaraCFO If the additional draw was from prior period profit (retained earnings) wouldn't that cash have already been taxed? Also, can you speak more to negative equity? Thank you