Form 1120-S - Where are shareholder distributions entered?
Desktop · Written guide Content date 1 min read
Distributions of property by an S corporation to a shareholder are reported on Schedule K (Form 1120-S) line 16d. Property distributions can include the following:
- Cash
- Property other than cash. (The amount to enter is the fair market value at the time of the distribution.)
To report a distribution to a shareholder, from the Main Menu of the S corp return (Form 1120-S) select:
- Schedule K
- Items Affecting Shareholder Basis
- Property Distributions
As with all other amounts entered in the Schedule K menu, property distributions are distributed pro rata to the shareholders according to their ownership percentage. If there is more than one shareholder, you will need to correct each shareholder's Schedule K-1 to reflect the correct amount of their distribution, if any. Adjusting any amount distributed to Schedule K-1 can only be done if automatic distribution is disabled in the Schedule K menu.
To adjust each Schedule K-1's amount for property distributions, follow these steps:
1. Disable automatic distribution to the K-1s in the Schedule K menu by selecting
- Automatically Distribute Sch. K Information? and answering No.
2. In the Schedule K-1 Input menu, select each K-1 and navigate here:
- Distributive Share Items
- Items Affecting Shareholder Basis
- Property Dist. Other Than Reported on 1099-DIV - Enter the amount of this shareholder's distribution.
Important: Once you have disabled automatic distribution, don't re-enable it. Otherwise, your changes to the Schedule K-1s will be lost.
Additional Information:
IRS: Shareholder's Instructions for Schedule K-1 (Form 1120-S)