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Marking Schedule E, line 28 (e) for basis computation in Lacerte

SOLVEDby IntuitLacerte Tax26Updated March 01, 2022

This article will help with reporting for individual Schedule E (Form 1040), Supplemental Income and Loss, Page 2, Part II, Line 28 (e): Check if basis computation is required.

This box should be selected if you report a loss, receive a distribution, dispose of stock, or receive a loan repayment from an S corporation along with an attachment showing the required basis computation.

Reporting a loss:

This will be selected automatically when a loss is reported.

Receive a distribution:

This will be selected when distributions are entered as follows:

  • Go to Screen 20, Passthrough K-1's.
  • Select S Corporation Information from the top left menu panel.
  • Select Line 16 - Items Affecting Shareholder Basis.
  • Enter amounts in the field (16D) Distributions.

Dispose of stock:

To select this box when reporting a disposition of stock, follow these steps:

  1. Go to Screen 17, Dispositions.
  2. Select Schedule D, 4797, etc.) from the top left menu panel.
  3. Enter the applicable information in the subsection Dispositions (Schedule D, 4797, etc.).
    • Required entries include Date acquired, Date sold and Sales price.
  4. From the lower left sections menu, select Corresponding Activity Information - Passive (8582) / At-Risk (6198) / Investment Tax (8960) / Qualified Business Income (QBI).
  5. In the field Form number of related activity select Schedule E (S corporation) from the dropdown menu.
  6. In the field Activity name or number select the applicable S Corp passthrough activity for this disposition.
  7. Scroll down to the next section Disposition of Partnership Interest or S Corporation Stock (8960).
  8. Select the box Disposition of partnership interest or S corporation stock (8960).

Receipt of loan repayment:

This will be selected when an amount is entered as follows:

  • Go to Screen 20, Passthrough K-1's.
  • Select S Corporation Information from the top left menu panel.
  • Select Line 16 - Items Affecting Shareholder Basis.
  • Enter amounts in the field (16E) Repayment of loans from shareholder.

For help generating Form 7203:

See How to complete Form 7203 in Lacerte for a step-by-step guide to completing the basis limitation and shareholder debt information.

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