S-Corp draw account
We own a country inn. For over 20 years, I've used an Equity 'draw' account to keep track of cash paid in and paid out of our S-corp. (We handle very little cash--almost all credit card receipts.) We also have a sister LLC, which owns our land and buildings, which does not maintain a checking account, so we've paid tax bills, etc. from the main S-corp account through a draw, and we record a rent payment there, as well. Historically, I've shown the balance of the draw accounts as a distribution at the end of the year, and have closed them to Retained Earnings on 1/1 of the next year. However, for the past few years, our distributions have gone negative. Up until this year, I've been able to show a negative distribution on our tax return, and all has been well. This year, ProSeries isn't allowing me to show a negative distribution. How should I handle this?
