Form 7203 Stock and Debt Limitations data source

Forum|Forum|3 years ago
March 20, 2023
5 replies
29 views

I am a shareholder in an S Corporation and have received a schedule K-1 from the company. I am using TurboTax Premier 2022, and am at the step for filling out form 7203's smart worksheet. When I get to this form, TurboTax already has an entry in part E which I did not enter (with the description "Line I, line 3m: Other items that increase stock basis") with a description "INCOME ITEMS" and a positive amount. I do not know how it is arriving at the amount that is displayed and the amount does not match any items in the K-1 form I have received and entered earlier. When I right click on either the description or the amount, the "Data Source" is grayed out. Where does Turbotax get this amount from?

PatriciaV

Level 15

Does the number in the Smart Worksheet also appear on Part I Line 3m (the section below the worksheet)? It may be a total or a number from the supplemental information provided with the K-1.

You could try deleting the K-1 then re-enter it while keeping track of changes on Form 7203. This might reveal which entry creates the number on Line 3m.

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eshahmirAuthor

Level 2

Hi, you wrote: Does the number in the Smart Worksheet also appear on Part I Line 3m (the section below the worksheet)?

Answer is: Yes and again the data source is grayed out.

You wrote: It may be a total or a number from the supplemental information provided with the K-1.

My comment: There is no data in K-1 that matches this number, and there is very little other data in K-1, making it unlikely to be a total. K-1 is reporting a loss. Just to check, I increased the K-1 loss amount significantly but it did not change the entry in form 7203. Similarly, I changed the reported loss to a positive number, and again no change!

PatriciaV

Level 15

We are unable to reproduce the experience you have seen. It would be helpful to have a TurboTax ".tax2022" file to test further.

If you would be willing to send us a “diagnostic” file that has your “numbers” but not your personal information, please follow these instructions:

Open your return in TurboTax for Desktop and go to Online in the TurboTax header.

Choose Send Tax File to Agent.
You will see a message explaining what the diagnostic copy is.  Click Send on this screen and wait for the Token number to appear.
Reply to this thread with your Token number and tag (@) the agent requesting the token from you.

We will then be able to see the same experience you are having. If we are able to determine the cause, we'll reply here and provide you with a resolution.

If you're using TurboTax Online: Open your return, go to the black panel on the left side of your program and select Tax Tools.

Then select Tools below Tax Tools.
A window will pop up which says Tools Center.
On this screen, select Share my file with Agent.
You will see a message explaining what the diagnostic copy is.  Click okay through this screen and then you will get a Token number.

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