Gain recognized on excess non-dividend distributions calculation
UltraTax CS calculates the gain on excess non-dividend distributions by taking the difference between the shareholder's stock basis before any current-year reductions for total losses and deductions, and the current-year non-dividend distribution for the shareholder. If the non-dividend distribution exceeds the stock basis, UltraTax CS calculates a gain on the Shareholder's Basis Worksheet, Page 1, and transfers it to the Schedule K-1 statement, Box 17, code for Other Information. Non-dividend distributions don't reduce the shareholder's loan basis.
If you want to change the amount of gain that the K-1 statements show, enter an amount in the
Gain on excess distributions (Force)
field under the Stock
tab in View
, Shareholder Information
, the Other Info
tab, then the Shareholder Basis
window. If you don't want a gain to show in the K-1 statements, enter 0 (zero) in this field. The Shareholder’s Basis Worksheet doesn't reflect amounts entered in the Gain on excess distributions (Force)
field.
