Husband and wife own shares of an S corp 50/50.
Under normal circumstances, I know distributions must be commensurate with the percentage ownership to avoid having two classes of stock.
However, in a community property state, and with the rules of attribution, do husband and wife shareholders have to take the same amount of distributions?
It seems that they would both be deemed to have taken the same amount regardless of whether or not the husband, say, took $10,000 and the wife took $2,000. They would both be deemed to have taken $6,000 each and basis calculations would reflect that.
Is my thinking correct?
Thanks for any replies...