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Federal input screens

Screen SBasis1 - Shareholder Basis (1040)

To access the State allocation spreadsheet, verify that the following conditions are present in the client then select
Allocation
 in this screen.
  • The client has at least 1 state return.
  • You are viewing
    Client Organizer
     data entry or input screen data entry.
  • For the
    PBasis1
    ,
    PBasis2
    ,
    SBasis1
    , and
    SBasis2
     screens,
    Name of entity
     has data.
  • Only AL, AR, CA, HI, KY, MA, OR, NY and CT (part-year residents and nonresidents only), and WI use state allocation amounts entered in the
    PBasis1
    ,
    PBasis2
    ,
    SBasis1
    , and
    SBasis2
     screens. AMT-related
    State, if different
     fields apply to CA.
You can use 2 allocation methods (percentage or amount) to allocate federal amounts to the states in the State allocation spreadsheet.
  • Percentage:
     Enter a percentage in XXX.XX format in the 1st field available in the State allocation spreadsheet. Select the state to which this percentage applies and select
    Apply
    . The amounts attributable to that state calculate automatically and display in the spreadsheet. For easy reference, the percentage for that state appears with the state name. If enabled, you can change (replace) individual item amounts on the spreadsheet from the calculated amount. Carryover amounts aren't allocated by percent.
  • Amount:
     When a percentage of the federal amounts doesn't apply, you can enter individual item amounts (if enabled) in the spreadsheet for the state. Zero (0) is a valid entry and will prevent the state amount from defaulting to the federal calculated amount. If you leave an individual item amount field blank, the federal amount, if present, is used in the state's calculation.
You can print the State allocation spreadsheet in a report format for future reference. Select
Print
 or
Preview
 in the spreadsheet. If licensed, you can also print to FileCabinet CS.
Enter
X
 to calculate the Shareholder Basis Worksheet and Form 7203, S Corporation Shareholder Stock and Debt Basis Limitation. This field marks automatically when any field in this screen has data. If this field isn't marked, the basis worksheet doesn't calculate, and the losses and deductions aren't limited by the shareholder basis. In addition, if this field isn't marked, the
SBasis1
 and
SBasis2
 screen information doesn't proforma.
Enter
X
 if the shareholder is making an election in accordance with Regulation 1.1367-1(g). If this field is marked, basis by deductible items (such as ordinary loss and section 179 expense) decrease before nondeductible noncapital expenses. If this field isn't marked, basis by the nondeductible noncapital expenses reduces before the basis by the deductible items. The election statement under Regulation 1.1367-1(g) prints automatically unless
Election was made in a prior year
 is marked.
Enter
X
 if the shareholder made an election in accordance with Regulation 1.1367-1(g) in a prior year. If this field is marked, basis by deductible items (such as ordinary loss and section 179 expense) decrease before nondeductible noncapital expenses. The election statement under Regulation 1.1367-1(g) won't print if this field is marked.
Enter the date the Regulation 1.1367-1(g) election was made. This information reports on the Election Report if
Print Election Report
 in the
Info
 screen in the
General
 folder has an
X
. For more information about tracking elections, see the help for
Election History
 in the
Info
 screen.
When
Disposition of activity
 in the
K1
 screen code is
1
 (entire disposition), the Schedule D amounts for this activity (from the statement for
Schedule for detail
 in the
Sales of Capital Assets
 section of the
B&D
 screen) are added to the amounts in the
Other stock basis decreases
 statement in the
SBasis1
 screen on the basis worksheet. When the code
Disposition of activity
 in the
K1
 screen is
2
 (disposition of passive activity sold on installment basis), the amount of the installment gain from this activity is added to the
Other decreases in basis
 statement. Because the stock's basis is used to calculate the stock's gain/loss, the gain from the stock sale isn't part of the stock's basis and the amount of other decreases is needed. If the gain from the disposed activity is an amount other than the calculated amount, use this field to enter a different amount for other decreases. If you enter
0
 (zero), an amount isn't produced in the
Other decreases in basis
 statement.
When the code in
Disposition of activity
 in the
K1
 screen is
1
 or
2
, the capital losses for this activity are excluded from the calculation of basis. (Capital losses are in the statement attached to
Schedule for detail
 in the
Sales of Capital Assets
 section of the
B&D
 screen.) The capital loss isn't included in the basis calculation because the stock's basis is a component of the capital loss and shouldn't be considered again in the calculation of basis. To include the losses for the activity from the
B&D
 screen
Sales of Capital Assets
 statement, in the losses allocation worksheet for basis, enter
X
 in this field.
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