I am a single owner of an S-Corp. In 2022 I withdrew $300K cash from the company to help fund the purchase of an investment property. The investment property was purchased using this $300K fund and my own personal fund. The property's title is under a Trust that I own.
I incorrectly recorded the withdrawal as "Owner Draw" rather than "Asset Purchase". I didn't even report it on the 2022 tax return as Distribution. On top of all this, I just realized that if I report this as a Distribution it will put my stock basis at about negative $200K. I should also mention that I HAVE given myself an ample enough salary from the S-corp.
So, now I am thinking of amending the 2022 return to correct this situation by recording the withdrawal as an "asset purchase". The company will own a percentage of the property through the Trust agreement. My question is, is this an acceptable way to correct this situation? Thanks in advance for any input.
