Gain on repayment of S/H loan?

[Margaret CPA in OH]

I'm finishing an 1120S. Single sh loaned corp money to survive (cash flow issue for contractor) and repaid most of that loan over the course of the year. When I put in the amount repaid in ATX it flows through as a recognized ordinary gain (Line 16E on K-1). I am struggling to reconcile the repayment of this loan as a taxable gain to the sh. Surely something is wrong with the data entry, right? (Retirement really is looking good)

[OldJack]

1120S-k1, box 16 =Items affecting shareholder basis. This amount is not a taxable income box. A loan from the shareholder increases basis for deducting operating loss and increases basis for liquidation. Repayments of the loan decrease those same basis and that is why it is reported in box 16.

[Margaret CPA in OH]

Thanks, OldJack, I know all that you wrote. The problem, as I thought I stated, is that when I input this into the shareholder's personal return, Sch E page 2 has the legend "Recognized gain on shareholder loan repayment." I think there is additional data entry or some carryover that is missing. I just noticed a Basis Worksheet form so will work on reconciling the proper entries. I know what the outcome should be; it's just getting the right numbers in the right places as ATX continues to improve the flow of prior year data and reduces our manual entry. I may have missed entering something on last year's return. Will check.

[OldJack]

Maybe the 1040 is telling you the loan had already been deducted by way of using it for basis in deducting operating losses.

[Margaret CPA in OH]

Imagine a dope slap here, at least I think so. Thanks for that reminder and I will check on that. Makes sense.

[Randall]

I think the basis worksheet can be used for that. ATX only added it the past couple of years so you may have to input some numbers to make the prior info correct.