Capital contributions or distributions from an S-corp effect the Shareholder's Basis in the stock of the S-corp rather than their direct equity in the business like a partership.
To adjust basis:
- In forms mode click on Basis Info Wks on the left-hand menu
- If you do not see this form click Open Form at the top of the menu and search Basis and choose Stock and Loan basis Info Worksheet and Open Form at the bottom of the pop up screen
- The worksheet will populate will all your shareholders
- Input the Stock/loan contributions as needed for each shareholder
- At the top of the form check the box to Calculate and print shareholder stock and loan basis?
- Once the worksheet is populated you will see a Basis Stmt show up for each shareholder in the menu on the left that can be sent with each Schedule K-1
@Cepedaer
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