form 7203

[kjthon]

I have a non-dividend distribution from our S-corp. I need to enter it on form 7203, but I have no idea what our stock basis is?

We do have inherited shares, so I have a number of shares and a percentage of shares that we own, but not a value for those shares to enter.

We have a loss this year for income, along with some rental income and the non-dividend distribution. I have entered those numbers but I'm not sure where to put our shares on the form since there is just a number of shares, not a dollar amount that they are worth.  Have I entered everything that I need to?

[PatriciaV]

The basis of inherited stock is generally the fair market value of the stock on the date of the original owner’s death, known as a stepped-up basis. If the stock is not publicly traded, you would need to contact the issuing company and request a valuation on that date.

It's important to record the initial value for your shares to avoid basis issues that might create a tax liability.

When you run your Final Review in TurboTax, the program will let you know if you are missing entries. However, you are not required to make an entry for Form 7203 Part I Line 1 (Stock basis at the beginning of the year). The form calculations will simply start from zero.