Question
Distributions in excess of retained earnings
Help on the 1040 Tax Return
S Corp owner has distributions in excess of retained earnings. The S Corp K-1 shows the total amount of distributions on line 16 D. When I import the K-1 into the personal tax return, it does not appear to automatically account for or calculate the capital gain tax on the distributions in excess. Is this a manual entry that I have to make? If it is manual, what do I need to do on the 1040 return?
Thanks!
