Form 7203 is used to calculate any limits on the deductions you can take for your share of an S corporation's deductions, credits, and other items. For example, your deductible loss generally can’t be greater than the cost of your investment (stock and loans) in the S-Corp.
You must complete and file Form 7203 if you’re an S corporation shareholder and you:
- are deducting an S-Corp loss (including a prior year loss disallowed due to basis limitations)
- received a non-dividend distribution from an S-Corp
- disposed of S-Corp stock (regardless of whether a gain was recognized)
- received a loan repayment from an S-Corp
If any of these situations apply to you, TurboTax will create Form 7203 on your personal return and perform limited calculations based on your entries in the Schedule K-1 section.
Refer to the IRS instructions for help in completing this form.
See this help article for information on Form 7203.
See this help article for entry instructions for Schedule K-1 information for TurboTax Online and TurboTax Desktop.
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