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Business & farm
It depends. The ending balance on M-2 doesn't really correspond to any particular line on the Balance Sheet. The change in Retained Earnings on the Balance Sheet should reconcile to the net income (loss) less distributions.
You'll file Form 7203 with your personal return to report your stock basis. The IRS is mostly concerned that the income allocated to you from the S-Corp is included on your personal return.
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‎February 6, 2025
11:19 AM