JimE62
Returning Member

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