Presumably this is an S corporation. The shareholder of the S corporation must report the income
that is computed on the K-1 regardless of whether there are, or are not, any distributions
in that tax year. So, if the S corporation has 10,500 of capital gain and I am the sole shareholder then I will report that 10,500 capital gain on my indiviudal return
to be netted with my other capital gains and then the individual
's net capital gain will be subject to tax at 15%.
Distributions to the shareholder are a balance sheet item (equity) and do not influence the net profit of the corporation. To the extent that the shareholder has basis in the corporation there is no tax on this return to the shareholder of his investment (basis).
Only if the distributions exceed the basis of the shareholder and so represent a gain on what the shareholder had invested in the corporation would any of the distribution be subject to tax (also as a capital gain) to the extent that the distribution exceeds the shareholder's basis.
Please ask if clarification is needed.