f404
Level 3

Form 7203 equivalent for 2020 - how to show Shareholder's Basis in S Corp?

Hello tax pros!

 

Hope you are all well. I have the following situation:

  • Right now, I'm doing 2020 personal taxes (I have extensions, no balances due, and am owed a refund) via TurboTax Premier 2020.
  • I have a single member LLC elected to be S-Corp.
  • I filed the 2020 S-Corp 1120-S on time a few years ago - it had a loss of $13,000.
  • I have the 2020 Schedule K-1 (Form 1120-S).
  • In TurboTax Premier, I have added the information from the Schedule K-1 as part of my Schedule E (Form 1040)
  • I will be printing my return from TurboTax and mailing it in since I can no longer file electronically.
  • The instructions at the top of 2020 Schedule E (Form 1040) say the following:
    • Income or Loss From Partnerships and S Corporations — Note: If you report a loss, receive a distribution, dispose of stock, or receive a loan repayment from an S corporation, you must check the box in column (e) on line 28 and attach the required basis computation.

 

Questions:

  1. According to the instructions at the top of 2020 Schedule E (Form 1040), I also have to attach the required basis computation.
    • Questions:
      • It looks like this should be done via IRS Form 7203, but that only came out in 2021, so it wouldn't be available in TurboTax Premier 2020?
      • For 2019, my former tax preparer used UltraTax CS "Form 1040 Shareholder's Basis Worksheet Page 1" and "Page 2", and "Schedule E K-1 Reconciliation Worksheet - Qualified Business Income" to show basis - where do I find these equivalent forms in TurboTax or on the IRS website or any other site?
      • Since I will be printing and mailing in my return, am I allowed to download these additional forms from IRS website and fill them out and include them with my return?
  2. On 2020 Schedule E (Form 1040), Part II, 28(e) is a checkbox that says: "Check if basis computation is required" - this box should be checked as per the instructions on that form (because the S Corp has a loss), BUT IT IS NOT CHECKED and I cannot find a way to check it in TurboTax.
    • Question: Can I print out my return in TurboTax and use a black pen to check that checkbox before mailing in that return?

 

Thank you all so much for any help or advice you can provide.

 

Best regards,

f404