G2R Posted October 20, 2023 Report Share Posted October 20, 2023 1120S Corporate return for 2021 showed a loss $20k. They didn't have the basis to take the full loss in 2021 so $15k was CF to 2022. In 2022, they show a profit of $20k so the CF loss is fully used in 2022. Then they file and receive the ERC for 2021 and receive $12k. ugh. Amending the 2021 1120S to include the ERC, doesn't change the SH personal return at all because the basis still limits the recognizable loss to $5k. However, it does change their 2022 personal return because there was less CF loss to absorb the 20k profit. I assume I have to amend the 2021 1120S to reflect the ERC. amend their 2022 personal return to reflect the CF loss adjustment. Is there any need to amend the 2021 personal return to reflect the change in the 7203 CF info? Quote Link to comment Share on other sites More sharing options...
Lee B Posted October 20, 2023 Report Share Posted October 20, 2023 If it was my client I would just show the adjusted CF on the 2022 1040. Quote Link to comment Share on other sites More sharing options...
BulldogTom Posted October 20, 2023 Report Share Posted October 20, 2023 18 minutes ago, cbslee said: If it was my client I would just show the adjusted CF on the 2022 1040. I agree with cbslee. However, if the client is a PITA....extra fee for amending the personal. Tom Longview, TX 1 Quote Link to comment Share on other sites More sharing options...
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