I know this topic has been beaten to death, but I thought I would add a new twist.
I'm amending a 2018 1120S. The sole shareholder took distributions but categorized them as subcontractor expenses. The amended return will have additional income and additional distributions.
Now I see that, in addition to the ordinary income, the shareholder will also have sizeable distributions in excess of basis.
I know many on this forum are "pro- loan to shareholder". I tend to be more conservative with the loan approach and advise clients to formalize the loan with a basic written agreement.
How would you folks handle this situation on an amended return? I can e-file the 2018 and 2019 1120S.