S Corp distributions not pro rata...how to fix

[delaney]

New client in 2014 they issued all distributions to 1 shareholder (there are 2 shareholders, husband and wife) Since it is a husband and wife, can I reclassify so it is split 50/50? If not, what are my options.

Thanks

[BHoffman]

I believe husband and wife SCorp shareholders can be counted as one shareholder, so I'm voting that yes you can split the distribution 50/50.

[delaney]

Thank you.

appreciate the help.

[ttbtaxes]

....or treat the payment to the one shareholder as a loan. Have a note drafted, have the shareholder pay interest on it, then have it repaid. At that point you can make proportionate distributions.