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!
@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.
@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
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.
@Joyce2019tax wrote:
Do I still need to attach it to 1040.....?
Not necessarily, the instructions are as follows.
If you are claiming a deduction for your share of an aggregate loss, check the box on the appropriate line in Part II, column (e), and attach to your return a computation of the adjusted basis of your corporate stock and of any debt the corporation owes you.
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.
To clarify my question: I need to attach a basis calculation to my Form 1040 per instructions on Schedule E, Part II, line 28. How do I do this if I E-File using Turbo Tax?
There is no way to attach the schedule. The best thing to do is mail the return and attach the schedule manually. An alternative course of action is to e-file the return and wait to see if the IRS requests the schedule, at which time you can mail it in response to their request.
Thank you so much for your prompt answer. I can't believe Turbo Tax doesn't fulfill this IRS requirement. By the time I paid to upgrade from Deluxe to Premier and then purchase Audit Protection on top of that, I'm getting pretty close to what it would cost to hire a professional. Deluxe didn't handle my K-1s so I had to upgrade to Premier and now Premier doesn't handle a pretty basic IRS requirement. In other words I can only E-File an incomplete return. Not very professional!
How can you get TT to generate a basis statement for an S Corporation stockholder?
@Gurk wrote:
How can you get TT to generate a basis statement for an S Corporation stockholder?
That simply will not work; you cannot generate a statement within TurboTax.
You can, however, use the worksheet at the link below as a template.
https://www.irs.gov/instructions/i1120ssk#idm139641012753504
You have to enable the forms in the form section. This is with the business version.
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.
The subject heading of the question states S corp. I wasn't aware you could file S Corp taxes with a personal version. I'm being sarcastic. Determining basis is huge for small companies who are trying to use turbo tax for tax reporting so to tell someone it isn't possible is doing a huge disservice to them.
My husband always used a tax professional from the start of his company and not one of them advised him of the need to have this determined. Turbo tax made this so much easier once I realized the need of determining the need for it because of years with loss.
I use Turbo Tax premier. Turbo Tax instructions say- Attach basis calculations (Schedule E pg 2 line 28 (e). I have done the basis calculations but there is no way to attach when I e-file.
Please- please- please- please can TurboTax make improvements to your software to let e-filers attach basis calculations.
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
@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.
That particular election form is filed to choose the specific ordering of items included in the basis calculation, not a "stock basis computation".
Note also that the post date of June 6, 2019 is actually the date this post was migrated to the new Community system. It is related to a prior year post, e.g., box 17 code V for 2019 is for Section 199A (QBI) information.
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.
I need to attach basis computation on F1040 because I had a distribution from S.Corp. I have shareholder's basis statement available from 1120 S. Do you think I can send this form as for the basis computation?
Please advise me. BTW, I am 100% shareholder.
There does not appear to be anything prohibiting sending that statement in as the basis statement since it contains the computation.
Wow, Thanks a lot! I am glad I can send that in.
You are always the best!
I'm in the same boat with this as well. Turbo Tax (and even their 'tax experts') are quite vague about this. I have a shareholder basis worksheet that needs to be filed. I generated a capital gain for distributions in excess of basis. Turbo Tax (premier) asks NOTHING about this information. I included the gain manually on Schedule D. And I will hope for the IRS to ask for the Basis Worksheet if they require it. It seems like it would be a simple matter for TT to collect the information from the basis worksheet.
I think kinglemax has things turned around a bit. The source document for inputing S-1 information is not the basis statement, but instead the Federal K-1 issued to the stockholder by the S Corp in question. The entry place is Business Investment & Estate/Trust Income to select K-1 data entry, and that will lead you through the insertion process of information to be entered from the info on the K-1. If you have to report K-1 data on your personal return, you then have to include a Basis Statement attachment to your personal return, both stock and debt basis. Turbo Tax Personal regrettably does not provide for such a report through its program even though most of the information is inputted when the K-1 data was inserted; the work around is to select "Blank Form" from the Forms menu and describe and input all the reported additions and subtractions, starting with the beginning of year basis so as to compute the end of year basis which should then agree to the basis statement issued to you calculated by the tax software used to prepare the corporate tax return and K-1 that you received.