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Excess Distributions from S Corp

Tax Geek
Level 1

How to report distributions in excess of Basis (which will be Long Term Capital Gain) on 1120 S 

 

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1 Comment 1
sjrcpa
Level 15

You don't. Report total distributions on the K-1.

You could disclose in a footnote to the K-1.

The shareholder reports the excess on their tax return.

The more I know, the more I don't know.