Thank you @AliciaP1 ,
Is it possible to have a phone call with you? I am willing to pay a fee if necessary so I can properly fill out the Form 7203. I want to make sure I have the basis correct from 2019 to present. I am trying to follow the instructions from the link you provided to create basis for 2019 & 2020 so I can then calculate 2021. However, the shareholder loan part is so confusing!
1) The loan did not affect the S-Corp P&L. It is a balance sheet item, so it's not like the loan increased or decreased the Ordinary business income (loss) that passes onto the K1. If that's the case does it affect my basis? More details are below.
2) In 2019 (our first tax year), we infused cash for start-up expenses. The 2019 K1 does not have a Box H ("Loans from Shareholders"), nor do I see a "Numbered" Box on that 2019 K1 reflecting the loan amount. So for the 2019 basis, do I include the loan in the basis? Does the loan increase or decrease the basis?
3) The 2020 K1 in box H shows "loans from shareholder" with a beginning balance (showing 2019 loan amount) and ending balance (total of 2019+2020 amounts). But again I don't see a numbered Box with the loan amount(s).
4) The 2021 K1 Box H shows a beginning balance and an ending balance of $0, because the loan was paid back to the shareholder in 2021, and that paid back amount is reflected in Box 16E of the K1 "Items affecting shareholder basis. My understanding this loan repayment is what prompted TurboTax for the Form 7203.
5) Based on the helpful link you provided, I think I can figure out where to plug everything but don't know if I should include or what line of the 7203 to include the loans for the 2019 and 2020 basis calculations...
Many thanks, and I would welcome a phone conversation with you if possible!
