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.)

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.

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.

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@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.

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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).