Don46
Level 1
02-14-2024
06:56 PM
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dascpa
Level 12
02-14-2024
07:25 PM
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As dividends are income (P&L), nondividend distributions are a return of capital (balance sheet). You would be lowering the investment balance by the amount of monies returned to the taxpayer. Therefore there is no "direct entry" as there is in a 1040, since the 1040 doesn't report the asset but a 1065 does.