- Mark as New
- Bookmark
- Subscribe
- Subscribe to RSS Feed
- Permalink
- Report Inappropriate Content
S-corp shareholder distributions with a negative Retained Earnings
Took a loan out for $100k for an equipment purchase and I took the section 179 deduction for $80,000. My net income after the section 179 was $20,000. My beginning retained earnings was $10,000, and I had a distribution of $40,000. The program is only letting me take a distribution of $30,000 - I believe because it thinks its a dividend, but its a shareholder distribution. I am trying to manually adjust the numbers but can't. I believe the program needs to be adjusted to allow Scorp shareholder distributions to be greater than the retained earnings. Please help
Topics:
‎April 3, 2021
7:56 AM