Hi ATX Community:
I just e-filed my 1120s at 4 a.m. this morning (yes..I procrastinated!) Then I realized on the Shedule K and K-1 the s/h basis shows approx $5,000 as prop distribution and $5,000 repayment of loans from s/h. I duplicated it in two places by mistake.
Before I amend though, if necessary,... this is what happened:
At the end of the year, I owed the company money (due FROM shareholder) since I used the company's account to pay for some personal things. At the end of the year instead of paying the money back to the company, I just recorded it as a distribution of the net income. Is this considered then a distribution and/or a repayment from loan? I don't know why I am getting confused on something simple.
Is this something only that affects basis since it has no effect on pass through income? What is the correct classification and do I need to amend?
Let me know.. Thank you for your help!
Frustrated in Miami...
miatax