miatax Posted September 14, 2007 Report Share Posted September 14, 2007 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 Quote Link to comment Share on other sites More sharing options...
miatax Posted September 14, 2007 Author Report Share Posted September 14, 2007 :( help... Quote Link to comment Share on other sites More sharing options...
kcjenkins Posted September 15, 2007 Report Share Posted September 15, 2007 If I understand you correctly, I don't believe you need to amend, since this does not affect the income. Quote Link to comment Share on other sites More sharing options...
miatax Posted September 15, 2007 Author Report Share Posted September 15, 2007 If I understand you correctly, I don't believe you need to amend, since this does not affect the income. Thank you KC... I won't amend it then.. I don't do any 1120s that's why I am a little bit confused whether it is a distribution or a repayment of loans from s/h. Quote Link to comment Share on other sites More sharing options...
kcjenkins Posted September 19, 2007 Report Share Posted September 19, 2007 As I read your original post, you did not have a "loan from s/h". You had a "loan to s/h". Am I wrong? Quote Link to comment Share on other sites More sharing options...
miatax Posted September 20, 2007 Author Report Share Posted September 20, 2007 As I read your original post, you did not have a "loan from s/h". You had a "loan to s/h". Am I wrong? The company lent me the money - 'due from s/h' / asset on the books. So yes - Loan TO s/h. same thing? So then this does not affect basis, correct? At the end of the year, instead of having a receivable - I decided that instead of writing a check to the company and then getting the money back when I make a distribution, automatically treat it as a distribtion. Does this make sense? Quote Link to comment Share on other sites More sharing options...
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