PatriciaV
Expert Alumni

Get your taxes done using TurboTax

As long as you have good reason for adjusting your basis on Form 7203, you can respond to any inquiries from the IRS. Your basis determines the amount of distributions you can receive as return of capital (nontaxable). Be aware of that if you take money out of the business.

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"