Shareholder Basis Schedule

[Jimmer]

New to ATX this year.

For the life of me, despite spending the last 3 hours trying to figure it out, including calling customer support, which was no help, I can't figure out where on a 1040 return to enter the shareholder's basis in an S-Corp.

I know a statement of basis needs to be attached for owners of an S-Corp, but I likewise can't find such a statement in ATX.

The bigger issue is, I have a loss in the prior year due to basis limitations. On the K-1 input screen I see passive loss carryover from prior year, and prior year at-risk loss carryover, but I can't find anywhere to put a prior year basis limitation carryover.

In addition, I'd like to enter basis information in general.

Thanks for any help you can provide.

[RoyDaleOne]

One place to look is Form 6198 at risk basis limitation.

I am not sure I have ever seen a place to enter the an S Corporation basis in the 1040 package.

I use a spreadsheet if I need to track the basis other than where you mentioned in the entity return.

[Jimmer]

One place to look is Form 6198 at risk basis limitation.

I am not sure I have ever seen a place to enter the an S Corporation basis in the 1040 package.

I use a spreadsheet if I need to track the basis other than where you mentioned in the entity return.

The problem is it's not really an at-risk limitation, and it's certainly not a passive activity.

I'm baffled.

[Jimmer]

Is there no such thing as an S-Corp Basis Schedule in ATX.

Do I just need to create another K-1 entry that says "Disallowed Prior Losses" and just put the prior year loss on line 1?

[imjulier]

Jimmer-

I'm not aware of a basis schedule in ATX for the 1040 either. I would have thought form 6198 as well. if not passive or at risk, what is the prior year loss from? That may give us a clue as to the best way to report.

Julie

[Jimmer]

Jimmer-

I'm not aware of a basis schedule in ATX for the 1040 either. I would have thought form 6198 as well. if not passive or at risk, what is the prior year loss from? That may give us a clue as to the best way to report.

Julie

It's a loss that was disallowed in the prior year because the stockholder didn't have enough basis to take it.

Am I crazy or is that different than an at-risk loss? Maybe I'll just put it there and call it good, even though that doesn't seem right.

[RJM]

Jimmer, there is a form you can add to the return called "Permanent Data", or something like that. In the form there are numerous tabs for tracking things for the taxpayer. One tab has an S-corp basis tracking spreadsheet. Just look in the Index tab, then bunny-hop to the S-corp tab. Hope this is what you are looking for. There are also loss carryover and I think at-risk tracking entries you can make right in the K-1 input forms, toward the bottom of the input forms.

[Jimmer]

Jimmer, there is a form you can add to the return called "Permanent Data", or something like that. In the form there are numerous tabs for tracking things for the taxpayer. One tab has an S-corp basis tracking spreadsheet. Just look in the Index tab, then bunny-hop to the S-corp tab. Hope this is what you are looking for. There are also loss carryover and I think at-risk tracking entries you can make right in the K-1 input forms, toward the bottom of the input forms.

Hey that's awesome. Thanks so much. If I'm not mistaken I'm required to attach a basis schedule for each S Corp. Do you suppose I could just include this schedule?

[Catherine]

Jimmer, there is a form you can add to the return called "Permanent Data", or something like that. In the form there are numerous tabs for tracking things for the taxpayer. One tab has an S-corp basis tracking spreadsheet. Just look in the Index tab, then bunny-hop to the S-corp tab. Hope this is what you are looking for. There are also loss carryover and I think at-risk tracking entries you can make right in the K-1 input forms, toward the bottom of the input forms.

I never knew that form was there!! Wow, that is going to be super handy on a whole BUNCH of client returns; THANK YOU!

[Maribeth]

Jimmer,

I am not aware of any Scorp basis schedule in the Form 1040 or that one is required to be filed with Form 1040. I maintain shareholder basis information on a spreadsheet for each client and that is held in my tax workpapers.

I have never used a 6198 for an S corporation. My understanding of that form is that it is used for partnerships or entities that have issues with the at-risk limitations, not basis limitations. I cannot think of an instance where an Scorporation would have an at-risk issue.

Maribeth

[kcjenkins]

It's a loss that was disallowed in the prior year because the stockholder didn't have enough basis to take it.

Am I crazy or is that different than an at-risk loss? Maybe I'll just put it there and call it good, even though that doesn't seem right.

Yep, you are just confusing two ways of saying the same thing. If you do not have enough basis, it's the same thing as not having enough 'at risk'. In other words, your 'basis' is what you have at risk.

Also , in the 1120 [and in the 1065] you can enter basis information in the K-1 input, which will then populate the basis statements. That is the form that you are talking about attaching. But using the Permanent file to track the basis is also good, especially for those clients who get K-1's from returns you do not prepare.

[SunTaxMan]

I am puzzled at this thread. In the 1040 ATX, there is the K-1 input worksheet, which has "basis" and "basis summary" worksheets - both are tabs along the bottom of the page when the K-1 input sheet is open.

What am I missing?

[RoyDaleOne]

Nothing, SunTaxMan I am.