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    S Corp distribution

    Taxpayer is the 100% owner of a S-corp.

    In year 2010, the S-corp had a profit of $5,000.

    So in year 2011, the S-corp distributed the $5,000 to him.

    In the 2011 S-corp Schedule K1 of the taxpayer, the tax program entered $5,000 in box 16 with the notation D (property distribution).

    My question: Is it correct to consider the $5,000 "Property distribution"? It is cash distribution and I always think "Property distribution" refers to something tangible.
    Last edited by AccTaxMan; 08-22-2012, 10:10 PM.

    #2
    Looks right to me, at least by both the K-1 and 1120S Instructions.

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