I understand that the excess of Distribution over Shareholder Basis in a S Corp is reported on Schedule D of Form 1040 as Capital Gain. What line of Schedule D does this go on? I tried reading the instructions but did not find anything about excess of distribution over shareholder basis. The excess distribution would throw the Shareholder's Basis into negative on the Books, correct? Also, is the excess treated the same (reported on Schedule D as Capital Gain) in a LLC elected as a partnership for tax purposes? Thanks in advance for your help.
- posted
17 years ago