RueW
Level 2

We own a country inn.  For over 20 years, I've used an Equity 'draw' account to keep track of cash paid in and paid out of our S-corp.  (We handle very little cash--almost all credit card receipts.)  We also have a sister LLC, which owns our land and buildings, which does not maintain a checking account, so we've paid tax bills, etc. from the main S-corp account through a draw, and we record a rent payment there, as well.  Historically, I've shown the balance of the draw accounts as a distribution at the end of the year, and have closed them to Retained Earnings on 1/1 of the next year.  However, for the past few years, our distributions have gone negative.  Up until this year, I've been able to show a negative distribution on our tax return, and all has been well.  This year, ProSeries isn't allowing me to show a negative distribution.  How should I handle this?