Schedule E, Box E

[JMS23]

With adding the form 7203, I included my Stock basis info.

The Schedule E, box E still does not show an X that this is required.

How does that box get populated with the X? 

thanks!

[JohnW152]

In TurboTax Desktop:

1. Select the Forms icon in the upper right corner
2. Select Schedule E, p2 under Forms in My Return in the left pane
3. Scroll down to Part II, line 28 and check the box in column (e) next to the relevant entry
4. At the bottom of the screen, select the Close Form button

See the IRS’ 2021 Instructions for Schedule E (2021) for more information.

If you’re using a different version of TurboTax, please specify the version.

[JMS23]

Thank you so much!

I have a quick follow-up. 

The new form 7203 which shows the Stock Basis amount.  That should not then populate  

the Schedule E for the box E?

Meaning - the 7203 has nothing to do with the Schedule E.

Thanks!

[AliciaP1]

That is correct.  Form 7203 is a new form for 2021 and will report the basis in your stock to the IRS instead of you just tracking it outside of your tax return.

@JMS23

[JMS23]

Thank you!

I guess my question is more a Turbo Tax function, not IRS.

My question was, with the new form 7203 if you input Stock Basis amount, shouldn't it populate Schedule E, box E with the X?  The Schedule E still says it needs to be checked.

Or does the 7203 not have anything to do with that Schedule E, box E.

Thanks!!

 @AliciaP1 

[AliciaP1]

It's not clear in TurboTax and it's not completely necessary.  Professional-grade software does not even check the box automatically.  The IRS will accept the return as long as the required Form 7203 is filed with the return.  You should mark the box on Schedule E in forms mode.

@JMS23

[Edited 04/06/2022|4:25PM PT]

[JMS23]

You are right, it definitley isn't clear in TT!  You'd think if required it would at least come up automatically somewhere to address it when certain criteria was met.

For the IRS, I agree with you they don't seem to require that be checked.

And now, as long as the form 7203 is completed they are good!

Thank you again for your help!