mh85251
Level 2
06-19-2024
03:43 PM
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I understand that the shareholder has a L/T cap gain, but I'm confused about how to report this on the books and return. What is the entry on the S Corp books? How do I reclass a shareholder distribution to an income account?
Because if I don't adjust the books, the shareholder is still taking a hit to his capital account for the excess dividends he is paying cap gains on. Is this correct?
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