No. TurboTax doesn't automatically handle excess distributions. However, Form 7203 will track your S-Corp basis.
If you received a distribution that was more than your adjusted basis, you have taxable income. In most cases, this is a long-term capital gain, which is reported on Schedule D (as a sale with no basis).
To enter this, open your return and search on "investment sales," then use the jump-to link to go to the start of this section.
- Choose "Other" and follow the prompts to enter a description (ie: Distribution in Excess of Basis), the amount and the date you received the distribution.
- Continue to enter a Cost Basis of zero (because you have no remaining basis) and the date you first invested in the company.
- TurboTax will display a summary page that shows how this will be reported on your return.
**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
