David94
Level 3

Hi,

My client who is the sole shareholder of s-corp, received a distribution of $8,000, out of which $7,500 exceeded the retained earning.

Based on my understanding, this excess distribution of $7,500 has to be reported as capital gain.

Could you please advise where to enter the amount of $8,000 and $7,500?

Thank you in advance for your help.

0 Cheers
JRC
Level 8

Distribution on form 1120S. Capital Gains on 1040 Sch D. 

0 Cheers
IRonMaN
Level 15

No capital was ever paid in for the stock?


Slava Ukraini!
abctax55
Level 15

Or any loans made?

HumanKind... Be Both