Is there any guidance out there for computing proportional S corporation distributions. Specifically, I have 3 shareholders. Mother & two children. The mother has been gifting shares to the children over the last few years. so the ownership % has been changing each year. There has been undistributed profits for each year and there has not been any distributions until this year. How do you compute a proportional distribution? Based on the current ownership % or a prior ownership % or an average?