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Level 3
posted Jan 11, 2023 4:26:00 PM

Owner's draw - 1120S, Sch. L, line 25; or, Sch. K-1, line 16D

Example,

 

S-Corporation has 2 officers, each 50% owners.  Both are paid as W-2 employees.  In addition to their salary, QBO reports distribution of owner's capital ~$60k. 

 

Should this be reported on 1120S, Sch. L, line 25, in the balance sheet section?

 

Should this be reported on Sch. K-1, line 16?

 

 

0 1 189
1 Replies
Level 15
Jan 11, 2023 4:52:05 PM

these are better referred to as "distributions". the amount distributed to each shareholder needs to be reported on each of their k-1s line 16D and should also show up in schedule M-2 column a line 7 and also be a reduction of retained earnings schedule L column d line 24.