I can provide some conceptual input on this, but not sure if this form needs to be manually completed or if TT pulls the information from the K-1. My thought is it is manually completed.
- Keep in mind that this form is brand new and was not released until the end of 2021. First year forms always seem to be problematic.
- In the past, S corp shareholders were required to maintain their own stock basis and debt basis schedules. This form is an attempt by the IRS to provide some consistency to the basis tracking.
- Line 1 should be reflecting your beginning of the year stock basis. This should come from however you were tracking this in the past. So whatever that figure was at the end of 2020, that figure goes on line 1. This also cannot be less than zero. If zero, input zero.
- Part I will be completed with only positive income and gain items.
- Part III will be completed with only loss or deduction type items.
- Part III line 47 column c will then go on Part I line 11. As noted previously, this most likely will need to be manually input.
- I believe your problem is that you have not entered the beginning of the year stock basis on line 1.
*A reminder that posts in a forum such as this do not constitute tax advice.
Also keep in mind the date of replies, as tax law changes.
