Re: Distributions to Shareholders

Forum|Forum|6 years ago
March 18, 2020
1 reply
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I have a follow up question. There's also a spot to enter Dividend Distributions to Shareholders under the balance sheet. Do you enter the same number as the Business Info section? Seems strange to enter it twice.

Thanks

DavidD66

No, you do not enter it again as Dividend Distributions to Shareholders.

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sjlocke

Based on this advice (enter cash distributions in shareholder info, enter $0 in balance sheet question) and now using that Schedule K information (line 16 Items affecting shareholder basis - D $amount) on my TT personal taxes, TT is telling me:

"Based on your inputs, you have one of the following conditions that require Form 7203 (S Corporation Basis)

-received a non-dividend distribution from an S Corporation

Fill in the information on the Form 7203 below about your S Corporation basis"

And Form 7203, line C "Stock Block" in highlighted in blue.

WTH do I put here? Like the OP, I have an LLC, file as an S-corp and take cash distributions.

Thx

PatriciaV

Employee

Form 7203 is used to track your cost basis in your LLC (S-Corp). The "Stock Block" line is used to identify each batch of stock reported on Form 7203. The description is not important to the IRS, so use something that is useful to you - number of shares, date of purchase, etc.

In most cases, you would either be the Original Shareholder or purchased your stock ownership. Stock Basis at the beginning of the year would be the total amount of contributions (investments) you made to the company in prior years.

For additional info, see TurboTax FAQ When should I file Form 7203?.

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