Hello,

I am founder of 15 year old Illinois SCorp. (3 other owners).

Approx annual revenues of $2.5MM

I am interested in taking some of our current "cash" and investing / trading.

My question are in regards to how gains would be taxed...

Example:
I plan on opening up a "Corporate Etrade" account.

Say I take $20,000 and invest that in a stock.... Sell that stock 1 month later at $50,000 ($30,000 in gain)...

Assume that this $30,000 is the only trade for the whole year, I sold and simply have $50,000 now sitting in the Etrade account.

My question... is this $30,000 gain immediately passed through as "income" to the Scorp? Or is not a gain until I actually take it out of the Etrade account?

“My question... is this $30,000 gain immediately passed through as "income" to the Scorp? “---->Iguess it is income to the S corp as part of income in AAA and is passed through to Sch K1 andform 8949& Sch D/1040. As an owner of the S Corp is taxed on your share of the earnings of the corporation without regard to any distributions taken. Those earnings retain their character in the hands of the owners - meaning that ordinary income is taxed at ordinary rates, capital gains are subject to the capital gain rates and rules, and passive income is subject to the passive income rules.