S-Corp Shares Reported on Schedule K-1

[user17694296540]

Hello,

I need a little help understanding the values in Box D and Box G & H.  I have a SCorp authorized for 1,000 shares and distributed 600 shares to myself on incorporation.  I am the only person in my SCorp and have not issues shares to anyone else nor have they changed form the above.

When looking at Part I, Box D, what should be the corporations total number of shares and the beginning and end of tax year?  Should the "Beginning of Tax Year" be total shares authorized (1,000) or the outstanding number of shares (600).

Then in Part II, Box H, I should have 600 listed for both the start and end of tax year, correct?  When it comes to the Current Year Allocation Percentage (Box G), should this be 100% or 60% (I think I know this will change based on what is reported in Part I, Box D).  

 How important are these numbers and if I made an error in previous years return, I probably should amend, right?  Thank you for any insight provided! 

[ThomasM125 · Accepted solution]

You should enter the corporate shares issued and outstanding in Part 1, box D. In Part II, Box H you would enter the number of shares you hold. The allocation percentage would be your share of the shares issued, which would be 100% if you are the only shareholder. Since you don't have other shareholders, the number of shares or associated percentages will not affect your taxable income and associated deductions or credits, so it will have a minimal affect on your tax preparation. As such, an amended return would likely have no significant affect on anything.

[user17694296540]

Thank you so much for the assistance.  Have a wonderful day!