Form 7203 figured out!

teethdood — Wed, 12 Oct 2022 08:35:02 GMT

I finally figured out how to fill out Form 7203 in my 1040 personal tax return and have it matched with my 1120S S-Corp return. This is an easy way to find out what your stock basis is.

Notice the following:

In your 1120S, go to Schedule L Line 27b (Liabilities and Shareholder's Equity) beginning of tax year.

Take that amount, add Schedule K Line 18 Income, add Line 16b Tax-Exempt Income, subtract Line 16d Distributions. You get Schedule L Line 27d End of tax year.

In Form 7203

Stock block: 1

Stock basis Part 1 Line 1: 1120S Schedule L Line 27b (Liabilities and Shareholder's Equity) beginning of tax year. Enter the entire amount if you're the sole owner, or if you have a partner, divide by their percentage. So if you own 50%, then enter half this amount.

Enter the rest using your Schedule K-1

Form 7203 Line 15 Stock basis at end of year should match the figure in your 1120S Schedule L Line 27d End of tax year

This figure will be in your 2022 1120S Schedule L Line 27b beginning of tax year and will be your Form 7203 stock basis beginning in 2022.

I tested this for the past 12 of my tax returns and they all matched up. Hope it helps.

Re: Form 7203 figured out!

Anonymous_ — Mon, 07 Nov 2022 18:38:26 GMT

@Mike9241

topic Form 7203 figured out! in Get your taxes done using TurboTax

Form 7203 figured out!

Re: Form 7203 figured out!