Shareholder Distributions/Basis

[DMR1]

If a shareholder has distributions greater than it's basis, are the excessive distributions that will be attributed to capital gain be calculated automatically within ProSeries or is a manual entry required?

Will the calculations of the excess amount be done within the S-Corp returns or on the individual returns? 

Thank you. 

[abctax55 · Accepted solution]

Manually, on the F 1040.  

(Unless PS is smarter than Lacerte)

Plus there is always the possibility of outside basis that the S-Corp has no knowledge of.