When distributions from an S Corp exceed Retained earnings and income

Forum|Forum|3 years ago
September 13, 2022
3 replies
8 views

I have an S Corp client whose shareholder distributions exceed his beginning R/E + current year income

by $7,000. The Pro Series software plugs in 0 for retained earnings and makes no mention of the $7000.

I don't do many Corporations and have never encountered this situation before. Not sure how to deal with

this. Any suggestions helpful

ProSeries Professional

This topic has been closed for replies.

dkh

Level 15

here is a post with same question

Distributions in excess of retained earnings - Intuit Accountants Community

T

Terry53029

Intuit Community Champion

Distributions will reduce his basis, if they exceed basis it will be long/short term capital gain

dd4vols

Intuit Community Champion

or... set the $7,000 us as a note rec from the officer (balance sheet item), and make him pay it back in an ensuing year.

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