Finance Questions? Ask a Financial Expert for Answers ASAP
This is considered as distribution and is reported in line 16 as you say. This is because You must report on your return (if you are required to file one) any amount required to be included in gross income for it to increase your basis. It is not reported ONLY if it is received against discharge of "indebtedness" towards the corporation.
I am sure this would help...
Is this considered distribution of property and affect the basis of the shareholder
Yes, it is called distribution of property and affect the basis.
Kindly refer http://books.google.co.in/books?id=214njOi7Pg4C&pg=PA684&lpg=PA684&dq=if+shareholder+pays+personal+expenses +distribution+of+property&source=bl&ots=gzu7MwzgNp&sig=CkkT40v-FK1lDCr47h8MPQSSjoE&hl=en&ei=moJNTYjkDcfjrAebyqHaBg&sa=X&oi=book_result&ct=result&resnum=5&ved=0CCQQ6AEwBA#v=onepage&q&f=false
I am sure this would help..