Distribution Received from LLC

[slskservices]

I have a client who received a distribution from an LLC (reported on the client's K-1 received from the LLC, Box 19 A).  My client is an S Corp so am wondering how I report this distribution received, specifically, does it go on the M-2 under line 3 - other additions or somewhere else?

Thanks!!

[sjrcpa · Accepted solution]

It reduces the Investment in LLC account on the S corp's balance sheet.

[slskservices]

Thank you!!!!

[sjrcpa]

You're welcome.