Thank you for the instructions for including the gain on 4797. That is what I was looking for.
The debt is under $25,000 and is a continuing account where sometimes I loan the business cash for a shortfall and when the business has caught up, they pay me back. I did not loan anything in 2023, but there was a balance from 2022. They paid me back $500 in 2023. Thus the balance on line 34.
I have a significant amount of suspended carryover losses due to basis limitations. I used all of the debt basis last year (2022) so have 0 for debt basis beginning this year. Turbo Tax put the current year (2023) income for the S-Corp as additional stock basis, which I used against some of the carryover losses.
Your answer did point me to one item that I hadn't realized before - that is when the net of all income, deductions, distributions and losses is positive, debit basis is restored before stock basis.
Again, thank you for your time and your answer.
