Shareholder's Basis Computation Worksheet

[PTGeek]

follow up questions regarding forms to complete for s corp

I had my accountant do my taxes last year and upon reviewing the docs sent in, my accountant also included a completed section L on form 1120-S (Balance sheet). It that required. TT does not ask any specific questions that auto populated the fields. 

TIA for your help. 

[PatriciaV]

Yes, Schedule L should automatically appear if the information was displayed on the prior year return. If this is not what you are experiencing, please check the following:

Option 1:

1. Open your return in TurboTax Business and go to Forms Mode from the TurboTax header.
2. Click on Form 1120S p1-2 in the left column to open the form in the main window.
3. Scroll down to Schedule B, Line 11.
4. If this line is marked "Yes," Schedule L will not be included. However, if you check "No", Schedule L will be included.

Option 2:

1. Open your return and go to Federal Taxes >> Balance Sheet
2. Are your Total End-of-Year Assets less than $250,000?
3. If this is true, and your total income is less than $250,000, when you click Continue, the next page "Good News" will automatically check the box for "Yes, I want to skip this balance sheet section."
4. Instead, click "No, I want to complete my balance sheet." This will force the program to complete Schedule L. You will also need to enter your balance sheet info, and it must balance. (See How do I reconcile my balance sheet in TurboTax?)

[PTGeek]

my 1120 s does not show a line 11 in the "Forms" view of TT. It starts with line 12

If end of year assets are < 1 million then I do not need to complete the balance sheet???

[Anonymous_]

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@PTGeek wrote:

my 1120 s does not show a line 11 in the "Forms" view of TT. It starts with line 12

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That is because you are looking at Form 1120-S pg 3-5. Look at Form 1120-S pg1-2.

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@PTGeek wrote:

If end of year assets are < 1 million then I do not need to complete the balance sheet???

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Your end of the year assets have to be less than $250,000.

[AliciaP1]

You are looking at "Form 1120S p3-5" which starts with Schedule B line 12.  look higher up the menu on the left and you will see "Form 1120S p1-2" which ends with Schedule B line 11.

The requirement is if your assets are more than $250,000 and/or your total receipts were more than $250,000, you must report Schedule L, M-1, and the Balance Sheet.

@PTGeek

[K Naylor]

Assuming the IRS does finalize Form 7203 for this year, will Turbo tax provide a way to attach the completed form to a return that will be efiled?

[AmeliesUncle]

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@K Naylor wrote:

Assuming the IRS does finalize Form 7203 for this year, will Turbo tax provide a way to attach the completed form to a return that will be efiled?

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The IRS finalized the form several weeks ago.  It is TurboTax (Intuit) that is being so slow about it (they claim they didn't even know it was required, despite the fact the draft Instructions were available since October).

As for whether or not it will be able to be attached to an e-filed tax return, I don't know.   An attached Basis statement has been required for several years, yet TurboTax did not have a means to attach it to an e-filed return in prior years.  So based on that, it seems likely it won't be able to do that this year.

[Bill_3]

This Form needs to be included in the electronic filing package of Turbotax.

[Anonymous_]

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@Bill_3 wrote:

This Form needs to be included in the electronic filing package of Turbotax.

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It should be, but it does not appear as if that is likely for 2021.

See https://care-cdn.prodsupportsite.a.intuit.com/forms-availability/turbotax_fed_online_individual.html

Perhaps this will be added for the 2022 tax year since the form does not require a signature.

[John1970]

Where do I input the S Corporation for Schedule D for form 7203 when I am closing the S Corp?

[PTGeek]

11th hr clarification or the 7203

So TT no has a 7203 integrated into the calculations, but when I move forward to efile - that form is not there. 

Just confirming 100% that I have to print and file by mail to include this 7203...

This is SOOO frustrating TT 🙂

Thx for all the help along the way 

[Anonymous_]

You are correct; e-file is not supported for Form 7203.

[shootastour]

Why would the 7203 form be included with the 1120S return at all?  I thought only the personal shareholder is required to fill out and file their own 7203 on the personal 1040 (if they took a distribution for instance).

[Anonymous_]

It is not included. Various posts were tacked on to the original post which creates a lot of confusion.

[genchang]

I just have a simple K-1 form with loss on line one. When I put it in turbotax it said I am not allow the loss. What should I do?

Thanks