Jump to content
ATX Community

1120S K-1 Shareholder Basis - please help


miatax

Recommended Posts

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

Link to comment
Share on other sites

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?

Link to comment
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.

Guest
Reply to this topic...

×   Pasted as rich text.   Restore formatting

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

Loading...
  • Recently Browsing   0 members

    • No registered users viewing this page.
×
×
  • Create New...