LLC Member Profit Draws

[srrobinson2]

I just went thru TT Business to input our bookeeping data from 2019. I did not see anywhere to list the member profit draws taken during the year. Did I miss something? Thanks.

[Irene2805]

According to TurboTaxDanielV:

They are reported in Box 16 with a code of D.  The distributions are tax-free to the shareholders provided they have enough basis in the S-corp to absorb the distributions.  (The distributions reduce shareholder basis in the corporation.)

[tagteam]

In the event you are referring to cash or property distributed to members, that would be entered under Business Info>>Partner/Member Information for each member and would appear on Line 19 of the member's K-1.

Note that the previous answer is in reference to an S corporation income tax return (Form 1120-S), not a Form 1065 for a partnership, multi-member LLC, et al.

[srrobinson2]

I just see the ability to declare the 50% / 50% ownership. I assume that whatever assets remain after deducting expenses is just equally applied to both of us. Thanks.

[tagteam]

---

@srrobinson2 wrote:

I just see the ability to declare the 50% / 50% ownership. I assume that whatever assets remain after deducting expenses is just equally applied to both of us.

---

That is correct; you have income tax liability on your share of the net profits whether they are actually distributed or not. However, you can enter cash/property distributions for each partner in the program (see screenshot).