I have an S-corp and receive a K1.
I am being asked to fill out a 7203. Unfortunately I am stuck and there is no walkthrough. I will ask questions here in hopes to receive assistance.
E: Part 1 line 3m other items that increase stock basis . What goes here, gross income? net income?
F: Part 1 line 13, other items that decrease stock basis. Do my expenses go here? What about asset acquisitions?
2. "Basis from any capital contributions made...during the tax year". What are examples of capital contribution? If I buy a vehicle for the company, that is definitely capital contribution. What about the repair expenses for it? Are those capital contributions too?
3a. enter the amount from Schedule K-1 line 1.This is worded in a confusing way. Basically, this should only be a positive # entered here, even if your income was negative that year.
11. allowable loss and deduction. enter amount from line 47 column c. well, that's the same as line 5. which seems odd because thats my net income before deductions and loss. So is your net income (before deductions) all that is allowed for a loss? Is that what this means?
13. other items that decrease stock basis? what would that be?
Part II shareholder debt basis.
16-34. I didn't issue notes and I didn't take out loans. The only debt I would have would be on a credit card used to buy assets, for eventual sale. Is that considered shareholder debt? Its done in the business name, not my name.
Part III
Q: what does column c "allowable loss from stock basis" refer to? Does it mean I am only allowed to deduct (pass through) an amount equal to what I have contributed (capital)? Or does it relate to my business income?
Big post but any help is appreciated.
