I have started a SCorp in the year 2013, have made some profit. my CPA have filed the 1120S and issued the K1 forms to the share holders. I understand that the net profits are taxed to the individual on there 1040, all the partners have filed there personal taxes and pad the tax for there profit share

Now Here is my question, if i distribute the profit to the partners in 2014, is the profit distribution amount treated as income for the year 2014 to the partners? will it get taxed in 2014 ?

the S corp profit generated in 2013 is included in the S corp AAA acct in 2013 and is taxed on its 2013 1120S ,NOT 2014 1120S; An S corp is known as a "pass through" entity for federal income tax purposes because its shareholders/owners/EEs , NOT partners, are responsible for taxes associated with income, deductions and credits. The S corp doesn't pay any taxes on the income it produces. Shareholders are not usually taxed on distributions from an S corp.however, aslongas distribution in 2014> sh’s AAA/stock or loan basis in 2014, then it’d be taxed as capital gain taxed at 0~15% on its 2014 return/. Depending on sh’s tax bracket. So,Distributions are taxable capital gain income if they exceed the S corp basis of the receiving shareholder.

Thx for the response... it really helped me out to under the IRS rules.