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Excess of distribution

lizaranda26
Level 2

S corporation 

shareholder has enough basis RE

this CY profit is less than distribution Procconect won’t let me enter the amount of distribution because is higher than profit

how to enter (without override) 

 

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1 Reply 1
Rick19744
Level 3
Level 3

Facts are limited, but a thought.

While the shareholder may have basis, is it limiting the distribution in the AAA?

If that is the case, the amount reflected on AAA may be less than what is reflected on the K-1.  This is due to the fact that AAA cannot go negative as a result of distributions.