Unlike the 1065 K-1 for partnerships and LLC’s, I find that many 1120S K-1’s do not include the shareholder’s equity which reports contributions and distributions with the shareholder. Distributions are reported on another line, but contributions from the shareholder to the company are not reported. I request the Shareholder Basis Worksheet, but many borrowers are unfamiliar with this worksheet. Do you have any advice on how to obtain the contribution information for an S Corp?.
Pam, you have discovered one of several differences between 1065 K-1s and 1120S K-1s. There is no place in the 1120S tax return where capital contributed by an individual owner is listed. Here are a couple of indicators of cash ‘contributed’ into the company from the shareholder but only work if you have the entire return and a balance sheet is required.