Business & farm

are you out of balance by the amount you put in initially for start-up costs? That needs to be shown as either paid-in capital or stock.  it's important to get this right because sooner or later you're going to have to provide in your 1040 form 7203 which is to show the IRS you had enough basis in the S-Corp to take any net losses and to make any distributions to you tax-free.  Keep track of your basis starting with the first year. if you don't there will be a mess in the years the 7203 is required.

 

pro software tracks basis for the tax preparer and stockholders in most cases. Turbotax does not track basis as far as I know 

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