Argh... last minute help, please!
I think I understand most of Form 7203.... 2 questions:
1) For Parts 2 and 3 (parts that reflect deb): Should we be putting a "-" sign in front of the amounts? Part 2 is a debt section, so I'm not sure if that will indicate a double negative and therefore calculate it as a +.
2) Part 3, column b instructions: "Enter any loss or deduction items disallowed due to basis limitations in prior years that were carried forward." How would I know if any amount was disallowed in prior years? On Schedule M-2 of my Tax Return, I've been carrying over our S Corp losses from year to year. I don't know how to determine how much, if any, the IRS didn't allow.
MANY THANKS!!!
1) There are no negative numbers anywhere on the form.
2) if in any year, the losses reported on Schedule K-1 took your basis below zero. those were "disallowed" and carried forward.
Note that Form 7203 reports your side of the investment. These calculations are not made by the S-Corp; these should come from your historical records.
For more assistance see:
@PatriciaV Thank you for your reply! But, I find it confusing in that you say that these are MY amounts, but every line of Part 3 of Form 7203 asks for the amounts from the K-1 (and the business loss from that IS from the Company), including "carryover amounts"....so how is that personal amounts if the language is specifically asking for K-1 amounts?
Your K-1 is YOUR share of the business activities. It makes more sense if there are multiple owners, but it is still valid if you are a sole owner of an S-Corp.
@yoadirenne6