David94
Level 3
02-01-2024
11:06 PM
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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.
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JRC
Level 8
02-02-2024
09:12 PM
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Distribution on form 1120S. Capital Gains on 1040 Sch D.