I'm in a slightly similar boat as the original post. I have a S-Corp with me at 51% and my wife at 49%, formed in 2009. No initial money in and the company is a consulting company so any physical expense is small and paid by the company. The company has basically just cash as an asset (I pay myself salary for the work done, then keep extra cash in reserve).
What I gather is that my stock block is 1 (we didn't purchase new stock or anything). What I gather is my initial stock basis (January 1, 2021) for form 7203 is 51% of the company value, then I fill out the lines from my schedule K-1 (lines 1, 16D, 16C), and a final stock basis. Can I use Line 27, Schedule L of my company's 2020 1120S for the company value, since this is the company's end of tax year shareholder equity?
Thus - my Jan 1, 2021 stock basis for Line 1, Part 1, Form 7203 is 0.51 * [Line 27, Schedule L, Form 1120S - 2020]?
THanks,
