Does shareholder's taxable excess distribution increase his basis on shareholder basis computation report

[hgtc]

S-Corp shareholder (only shareholder) reported $100k excess distribution in 2020.  He has $250k net incomes in 2021.  So, his outside basis = $350k.  

In Lacerte's M-2 ending balance = $350k while Balance Sheet, sch L is $100k less.  Is this correct?

Also, shareholders basis computation report does include this $100K excess distribution in stock basis at year end.

[Strongsilence-CPA · Accepted solution]

The 2020 excess distribution will add to SH basis only if it was taxed (on the 1040).  Hope that helps.