TurboTax is saying I need to complete Form 7203 - S Corp Shareholder Stock & Debt Basis Limitations, but it doesn't walk me through how to complete it! It just says, here is a link to the form, now complete it by yourself! This is the 3rd tax year for our very small S Corp and my husband and I are the only 2 owners. The reason we have to complete Form 7203 is that we "loaned" our S-Corp funds to get started in 2019 and 2020, and then in 2021, we paid ourselves back (without interest). We have 100 shares of stock at $1 par value, one owner with 51 and the other with 49. Other than the $100 investment of capital stock, we have made no other investments to the S-Corp and we have received no distributions for 2019, 2020, 2021.
1) How do I calculate the basis for each of us?
2) How do I know if to select "Formal note" or "Open Account Debt" for the loan? This was simply an infusion of cash to get us up and running and there was no interest expected or paid.
3) Do I fill out Form 7203 for each of us by using the figures on our K1, or do I need other info from the balance sheet, P&L, etc?
I used TurboTax for Business to create our 1120S and K1s but there is no data in the Partner's Capital Account Analysis section L of the K1.
