Can I enter and track basis for partners or shareholders in the individual return?
Yes, basis worksheet calculations are available in the 1040 return.
- Partner Basis and Debt Basis are entered on the K1P screen, on the tabs Basis Wkst and Basis Wkst (cont.).
- The Stock Basis and Debt Basis amounts are entered on the K1S screen, on the tabs Basis (7203) and Basis, cont. (7203).*
After you have entered the basis details, the program will track the adjusted basis, limit any losses based on the basis calculation, and carry forward to subsequent years the adjusted basis and any disallowed losses. Review the basis worksheets produced in view mode for more information:
- Wks K1P Detail Adj Basis
- Form 7203
For more information about limitations, see Related Links below.
*S corp K1 Notes
- Starting in tax year 2018, the IRS requires a basis computation to be attached to individual returns where the taxpayer is a shareholder in an S corporation in which specific circumstances are met. See Related Links for further information.
- Non-deductible expenses only get carried forward if the taxpayer has made the irrevocable election to take losses and deductions before non-deductible expenses by checking the box on the K1S screen > Basis (7203) tab > E Regulation section 1.1367-1(g) election is in effect during the tax year for this S corporation. See the F1 field help for details.