I had basis of $100,000 in my S Corp at the beginning of 2024. The company lost $45,000 for the year and I took distributions of $125,000. The K- 1 I received shows the ordinary loss on line 1 of $45,000 and the distribution of $125,000 under line 16 code D.
How do I report this $25,000 excess distribution as a long-term Capital gain and is the $45,000 carried over to
2025?
