This is my first time using TurboTax Business with a solo S-corp. Previous returns were through a CPA. I have a vague notion of keeping up to date on basis, and my understanding is that I need to document my capital contributions (owner's deposits) somehow through the K-1 form. How do I document this the proper way using TurboTax Business? I saw a previous thread from 2 years ago, but it didn't seem to make sense (perhaps the form boxes were renumbered by IRS).
A capital contribution won't appear on your K-1 (1120-S).
In TurboTax Business, you can enter the figure on the S Corporation Shareholder Stock and Debt Basis Limitations Worksheet in Forms Mode (and on your Balance Sheet, if necessary).
Thanks for the tip. So it looks like it shows up as "Sh Basis Wks" when I switch to Forms mode. So, I opened it up, and as a non-accountant, the forms looks foreign to me. I have such a simple return (no real estate, no vehicles, no dividends, no distributions, no interest) just a simple service-based income, a handful of boring deductions, with a slight loss for the year. The form was autopopulated with just 35(a) Ordinary business loss, ad the total at the bottom.
Do I put my total 2022 capital contribution in Part 1, box 2?
Is there a step-by-step for this form that I somehow skipped over? I feel like I wasted money on Turbotax and I need to go back to another CPA or pay for lessons on how to fill out this form.
@Turby2000 wrote:Do I put my total 2022 capital contribution in Part 1, box 2?
Yes, that is where you would enter a capital contribution on that worksheet. You should have been presented with a facsimile of that form during the interview (Step-by-Step) but it's really easy to skip that particular screen and you have to scroll to see the whole worksheet.
Hmm ... do you remember which section the step-by-step screen was? I went through everything but couldn't find it. I did, however, skip the Balance Sheet section because I'm well under the minimum.
Look in the Shareholder Information section (I realize it's difficult to locate).
OK, thanks. It basically takes you to the same long complicated form, but it doesn't have a true step-by-step guide (hints, where to locate info from the prior year's forms, etc.). It's not that helpful for those without accounting or tax prep experience. This form is too complicated for me. I could ask questions on how to fill in each box, where to get the numbers, but that would take way too long. I wish Turbotax would have spent more time setting up a guide for this section. I can't be the only tax illiterate user who just wants to document basis and add a capital contribution. *SIGH*, back to the CPA ...
but I do appreciate the help
The Shareholder Info section only prompts for shareholder distributions - not for capital contributions. I'm using TT Business 2023. I'm equally clueless as the OP, perhaps more-so, so I'd appreciate any help with where to add Capital Contributions for an S-Corp. Thanks in advance!
As tagteam explained earlier, there is no entry for capital contributions in the Step-by-Step interview for Form 1102S (S-Corp), nor is this reported on the shareholder K-1.
However, TurboTax does create a Shareholder Basis Worksheet for each shareholder. This is found in Forms Mode directly under the Schedule K-1 for the shareholder.
Current year stock purchases (contributions) are entered in Part I Line 2 of this form. From the Shareholder perspective, this is a new "stock block" for Form 7203 that is filed with the individual 1040 tax return.