MP
Level 2
09-14-2023
10:17 AM
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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?
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sjrcpa
Level 15
09-14-2023
11:10 AM
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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
09-14-2023
01:13 PM
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Thank you.