1120S Shareholder Basis Schedule Line 33, Loan Repayments to Shareholder During Tax Year are not appearing on the Shareholder Basis Computation. There are three related entries required for Loan Repayments to the Shareholder.
Loan amounts repaid to the Shareholder: Distributions, Loan Repayments.
- Go to Input Return ⮕ Shareholder Information ⮕ Distributions, Loan Repayments.
- Enter loan repayments to the Shareholder for Debts that were outstanding at the Beginning of the Tax Year in Shareholder Loan Repayments.
- The program calculates the basis of the loan repayment by: multiplying Shareholder Loan Repayments by the ratio of the Total Adjusted Basis of the Debt to the Principal Amount of the Debt at the Beginning of the Year.
- Total adjusted basis includes any restoration of Debt basis calculated under Regulation Section 1.1367-2(c).
- The program subtracts the basis of any repayment from the Debt Basis at Beginning of Tax Year in Shareholder's Basis (7203) when calculating the Ending Debt Basis on line 34 of the Shareholder Basis Schedule.
- Enter an amount to override the calculated basis of the loan repayments. If the override amount is zero, enter -1.
Basis Computation: Shareholder's Basis Computation
- Go to Input Return ⮕ Shareholder Information ⮕ Shareholder's Basis (7203.)
- Select specific Shareholder's tab.
- Scroll down to Principal amount of debt owed to shareholder at beginning of tax year and enter the correct amount.
Loans owed: Balance Sheet
- Go to Input Return ⮕ Balance Sheet, M-1, M-2, M-3 ⮕ Balance Sheet.
- Select the Federal tab.
- Scroll to the Liabilities and Equity section.
- Verify the amounts entered in Loans from shareholders (Click on button to expand)