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Get your taxes done using TurboTax
I'll answer your questions by your numbers:
- Your basis calculation represents the value of the stock you own. It is not difficult to do, but it is a running total from day one. Until 2021, it has been each shareholder's responsibility to track their own basis but it was not required to be reported. Please see S Corporation Stock and Debt Basis for details and the method for the calculation.
- Since your original intent of the infusion was to pay yourselves back without interest and did not formally document the note and terms, you have "Open Account Debt" that is being paid back.
- The link provided above has the information you need to identify the amounts you need for the calculation. Although, your mention of the "Partner's Capital Account Analysis section L of the K-1" references the K-1 for a Form 1065 Partnership Return rather than the K-1 Form 1120-S you would have for an S-Corp. You need to ensure your business has filed the correct returns and elections.
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‎April 1, 2022
8:24 AM