topic Where to report Shareholder distributions on 1120S - which line on the balance sheet? in Business & farm

Where to report Shareholder distributions on 1120S - which line on the balance sheet?

Ashwin1 — Wed, 05 Jun 2019 22:28:59 GMT

I am trying to report that I have distributed business income to shareholders, but I need to know which line on the balance sheet (Schedule L) to report this on.

Thanks.

Shareholder distributions reduce equity, which is a the b...

PatriciaV — Wed, 05 Jun 2019 22:29:01 GMT

Shareholder distributions reduce equity, which is a the bottom of the Balance Sheet.

In TurboTax, report distributions to shareholders under Business Info >> Member/Partner Information. Edit each member to report contributions, distributions, other adjustments, and ending capital. Your entries in this section flow to the Balance Sheet and to the individual Schedules K-1.

Note that you may not be required to include a balance sheet. Read more here:

https://ttlc.intuit.com/replies/3302277

Thanks for the response Patricia. In my case, I need to r...

Ashwin1 — Wed, 05 Jun 2019 22:29:02 GMT

Thanks for the response Patricia. In my case, I need to report the balance sheet. However, I think the following may be the right recourse - to report the dividend distribution on line 16 D of schedule K. This draw from the business income from line 1 Schedule K which is line 21 on 1120S. That dividend distribution will also show up on schedule M-2 line 7 (essentially, the business income that comes to the sole owner of the LLC). Is this correct?

Yes, that is the correct reporting for a dividend distrib...

PatriciaV — Wed, 05 Jun 2019 22:29:03 GMT

Yes, that is the correct reporting for a dividend distribution.