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Error check on Turbotax Business 2024 Form 1120S

Finishing up Business S corp 1120S.

doing error check, it keeps saying an error on my debt value. 

 

I have no debt, but i do have loan from shareholders. The loan section is completed and no errors. 

 

but the debt section, remains red. it wont let me leave it blank. and it will not accept 0. 

each time I check for error, it shows this section as an error need to be corrected. 

 

thankx. 

Debt.jpg

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4 Replies
PatriciaV
Employee Tax Expert

Error check on Turbotax Business 2024 Form 1120S

Since you have an amount in the Total column, it needs to be allocated to one or more of the Debt columns. Manually enter the amount applied to the shareholder loan(s) in the appropriate column (a, b or c). 

 

If you right-click on the Total in Line 23 column (d) and choose "About..." you will see this information:

 

Part II, Line 23: Debt basis restoration 
Refer to the cross-reference help for details of how the line 23 total column amount is calculated [right-click, then Data Source]. You must manually enter the debt basis restoration applied to the shareholder's loan(s) in the appropriate debt column(s) on this line. The sum of all line 23 debt column amounts entered must equal the calculated line 23 total column amount.

 

Note: The debt basis restoration is limited to the amount needed to restore debt basis to the face of the loan. The amount entered on line 23 cannot be greater than line 16 minus line 21 for each debt. See the Form 7203 government instructions for more information.

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Error check on Turbotax Business 2024 Form 1120S

So I basically reenter Line 21 Debt 1 my yr beginning loan amount to the corporation?

 

when I do this, Line 23 Debt 1 no longer requires an entry. 

 

thankx. 

PatriciaV
Employee Tax Expert

Error check on Turbotax Business 2024 Form 1120S

To confirm, you entered the amount shown in the Total Column for Line 23 column (a)?

 

If your entry resolves the form error and the result looks correct to you, then you can proceed. Be sure to review Schedule K-1 to confirm the shareholder debt is reported the way you expect it to be.

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Error check on Turbotax Business 2024 Form 1120S

Hi, 

 

I re entered my shareholder's loan amount into the debt section B Line 21 column (a)Debt 1. 

 

doing so does not require me to enter Line 23 Column (a)Debt 1. 

I searched on line. it says my beginning year shareholder loan amount should be the same as debt as long as there is no changes or adjustments. 

or am I supposed to enter $11,453. into Line 23 Column (a)Debt1?

 

ty

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