S corp distributions excess of basis

[cpabsd]

S corp distributions in excess of basis - I believe these are to be treated as LT capital gains but ATX is bringing them in as ST.  How do I override to treat as LT?  I cannot seem to locate within software.  Bunny hopping is not working on this one and it will not let me override the system.  

 

[jasdlm]

The stock has been owned longer than a year?

[Randall]

I don't think time matters.  I think they're automatically considered long term.  Enter acq date as various or a date S corp started if over 12 mos.  Then override ST with LT.

[Abby Normal]

It defaults to short-term on the K1 input screens. You have to enter the long-term portion.

 

Edit: I see they've changed it a bit this year.

Edited March 10, 2015 by jmdaviscpa

[grmy2h]

It's on the detail tab of the K-1 input screen about 3/4 of the way down.

[jshtax]

It isn't a loan to shareholder?

[Abby Normal]

It's on the detail tab of the K-1 input screen about 3/4 of the way down.

It's also on the input tab where it's a lot friendlier interface, IMO.

[cpabsd]

On the input tab - in the corporation or individual file?  I am just missing the line item for this one.  Frustrating!!

[jasdlm]

• A non-dividend distribution in excess of stock basis is taxed as a capital gain on the shareholder's personal return. It is a long-term capital gain (LTCG) if the S corporation stock has been held for longer than one year

 

 

This is straight out of the IRS Pub.  What am I missing?  Are they always LTCG?

[cpabsd]

I know they are long term...but software is defaulting to short term.  It will not allow me to override and I cannot locate the proper place to input that it is to be treated as long term.  i found a work around ....but i'd rather do it correctly.  

[grmy2h]

On the input tab - in the corporation or individual file?  I am just missing the line item for this one.  Frustrating!!

It will be input on the individuals return.

[Randall]

I'm not sure where you're inputting.  In ATX on Form 8949, input tab:  if you enter an acquisition date, the ST or LT will show up accordingly.  If you enter various, ST will show up.  You can then override ST with LT.  I usually enter 12/31 as disposition date.