Enter deemed dividends

A deemed dividend is considered an extra paid-in capital by the shareholder. On the Basis Worksheet, the deemed dividend will data share as additional paid-in capital as opposed to dividend income. The S Corporation should issue a 1099-DIV for the amount of the deemed dividend to be reported on the shareholder's 1040 return. The deemed dividend won't be reflected on the Schedule K-1.
Enter the total amount of deemed dividend elected in the
Total amount of deemed dividend elected under Regulation 1.1368-1(f)(3) field
of the Ms screen in the Balance Sheet folder.
To enter a deemed dividend for a specific shareholder, select
View
,
Shareholder Information
, then
Other Info
and enter the amount in the
Deemed dividend (Force)
field.

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