Question

Retained earnings on final filing

Forum|Forum|2 years ago
February 29, 2024
1 reply
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I am filing the final return for my single owner S corp. No matter what amount I put in the shareholder distributions, it will not adjust the retained earnings down to the required amount of 0. If there is a limit on how much distribution it will let me take, how do I zero out the retained earnings? Thanks

TurboTax Business Windows

M

Mike9241

we can't see the return which makes it diffcult to diagnose the issue. but if RE is not zero there must be another account that offsets it otherwise the balance sheet would be out of balance. if the balance sheet is oout of balance, but was in balance at the start of the year, you entered something incorrectly and that could be anything

is the m-2 showing as ending balances all columns as zero? is M-2 beginning balance all columns in agreement with retained earnings?

K

kim125Author

The M-2 all comes out to 0, but I do have a value in the 'distributions in excess of retained earnings' field. I dont understand why those dont lower the retained earnings rather than being listed there.