LenaH
Employee Tax Expert

Business & farm

The money withdrew would be considered a shareholder distribution. Distributions reduce equity and would be reported on the Balance Sheet. In other words, distributions reduce the amount of retained earnings held by the company. 

 

To report shareholder distributions for your S-Corp, you would enter the total distributions under Business Info >> Member/Partner Information. The distributions entered here will flow to the Balance Sheet and the Schedule K-1. 

 

@jep356

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