MP
Level 2

A Sch K-1 was issued by a partnership to an S Corporation.  The Sch K-1 from the partnership shows a distribution in excess of basis. As it is not a distribution from the S Corp I understand that it should not be reported on the Shareholder Distributions Smart Worksheet.  Where on the 1120S should this excess distribution be reported? 

 

0 Cheers
sjrcpa
Level 15

It should appear as a capital gain. Long-term if they owned it >1 year.


The more I know the more I don’t know.
MP
Level 2

Thank you.