S corp shareholder basis calculation

Forum|Forum|6 years ago
October 15, 2019
3 replies
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Schedule E page 2, per the form instructions, if an individual reports a loss, receives a distribution, disposes of stock, or receives a loan repayment from an S Corporation, they must check the new box and attach a copy of their stock basis computation.

I could not find the stock basis from turbo tax business . Could anyone please let me know where I can find this worksheet?

Thank you!

Best answer by Anonymous_

Not true. The business software does have this option. You just have to enable the forms manually in the form section. My first year using turbo tax I fed in info for each year starting back in 1999 with all the records, checks and tax records, enabled the forms and was able to establish the basis from the beginning. After printing the forms I deleted the info and put the next years' info in and printed. Saved my sanity because the IRS forms and explanations were way beyond me no matter how many times I read them.

@ojedainspections wrote:

Not true. The business software does have this option. You just have to enable the forms manually in the form section.

With respect to TurboTax Business, correct, but the fact remains that it has no utility for users who only have one of the personal income tax preparation products (which is mostly discussed in this thread).

Further, there is no way to attach that Worksheet to an individual return even if a user had both the business and personal edition.

Anonymous_

Level 15

@Joyce2019tax wrote:
I could not find the stock basis from turbo tax business . Could anyone please let me know where I can find this worksheet?

TurboTax does not actually track your basis in the S corporation; you need to calculate that outside of the program. There is a worksheet in the K-1 instructions.

See https://www.irs.gov/instructions/i1120ssk#idm140155513239760

Joyce2019taxAuthor

Level 2

Turbo did not require me to attached the basis calculation even though I already input my K-1 with code 16 (receives a loan repayment from an S Corporation). Do I still need to attach it to 1040 and how to do it if I efile?

Thanks.

CMFlorida

Level 2

@CMFlorida wrote:
This question in the community explains how to attach the basis form. https://ttlc.intuit.com/community/business-taxes/discussion/i-need-to-add-a-statement-attachment-to-my-s-corp-k-1-info-regarding-reg-1-1367-1-reduced-basis/00/752677

No, that is just a way to create a form to put the information. The last time I checked, that is NOT sent with the e-file.

I apologize, I worded that poorly. That link shows how to create the form but there is no way to e-file it, you have to paper file and attach the form, which is silly. TT needs to come up with a way to e-file it, now that the form is required.

ojedainspections

Level 4

Actually turbo tax will give this information if you enable the forms in the form section. For the numbers to be correct you need to go back to the beginning of the company and account for how much money you put in, loans, etc. Once you go through the whole process looking at the IRS explanation turbo tax will make your life so much easier because those instructions on the IRS website are very hard to follow. Now that information is updated automatically when I do each years' taxes. You have to know your basis in the company if there is ever a loss you want to get credit for.