ak
Level 1
11-26-2020
11:16 AM
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1 Reply 1
TaxGuyBill
Level 13
11-26-2020
11:33 AM
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It is not the job of an S-corporation to keep track of shareholder's Basis; that is the job of the shareholder. Therefore the K-1 does not show "excess distributions".
The K-1 shows distributions. If the distributions are in excess of Basis, that is calculated by the shareholder and entered on the shareholder's 1040.