How do I record an owner distribution from my small business to myself in Quicken 2017

Question

I own a small S corp and am taking an owner distribution. How do I record this distribution in Quicken so that the non-taxable status is maintained?

Tom Young · Accepted Answer

Are you accounting for the S Corp in the same file as your personal finances?  You really can't do that, at least not very well.If this distribution will be reported on Schedule K, line 16d "Distributions (attach statement if required) (see instructions)" you'd enter that in Quicken as a reduction of your basis in the S-Corp.

Frankx · Accepted Answer

Hi @Bearwithhawk,

Distibutions from an S Corp received by an owner are not necessarily taxable and therefore should be recorded as an potential adjustment to the Quicken account that was established to reflect the S Corp ownership.  So the entry in the owner's Quicken file would be:

Debit to: Cash-checking/savings account     xxx.xx
Credit to: ABC S-Corp ownership account                    xxx.xx

The owners K-1 will reflect the income/loss allocations, and other tax related items at year end.

Frankx