Answered: Does shareholder's taxable excess distribution increase his basis on shareholder basis computation report

hgtc · ‎03-11-2022

S-Corp shareholder (only shareholder) reported $100k excess distribution in 2020. He has $250k net incomes in 2021. So, his outside basis = $350k.

In Lacerte's M-2 ending balance = $350k while Balance Sheet, sch L is $100k less. Is this correct?

Also, shareholders basis computation report does include this $100K excess distribution in stock basis at year end.

strongsilence · ‎03-11-2022

The 2020 excess distribution will add to SH basis only if it was taxed (on the 1040). Hope that helps.

strongsilence · ‎03-11-2022

The 2020 excess distribution will add to SH basis only if it was taxed (on the 1040). Hope that helps.

Does shareholder's taxable excess distribution increase his basis on shareholder basis computation report