Hi:

I have a Sub S Client with distributions in excess of Stock basis mainly due to taking Bonus depreciation on several financed Equipment. . I understand that this has to be reported as LT Capital gain right?

If so how would I enter that on from 1120-S

ANOTHER OPTION?

It is possible that this would be offset by income in 2022 so is it advisable to enter it as a Loan to Shareholders for the time being  or an entry on Line 25 Schedule L adj.  to Shareholder equity

Any guidance will be immensely appreciated

Thanks

MP