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Federal input screens

Shareholder Basis window

Use these tabs to enter shareholder stock basis. UltraTax CS combines the current-year loss and suspended loss amounts and determines the allowable amount based on the available stock and loan basis.

Stock tab

Enter beginning-of-year stock basis. UltraTax CS proformas this amount from the prior-year end-of-year stock basis.
Enter the amount of capital contributions made by the shareholder during the year.
Enter the description and amount for items that increase a particular shareholder's stock basis in these fields. If there are items that increase all the shareholders' stock basis, open the
KSep
 screen in the Schedule K folder, enter the description and amount, and then enter
I
 in the Basis column. UltraTax CS then increases the stock basis of each shareholder by an amount equal to the amount entered in the KSep screen, multiplied by the respective shareholder's ownership percentage.
If there are items in the
Return deductions not on books
 field in the
Ms
 screen in the Balance Sheet folder that increase all the shareholders' stock bases, enter
C, T, or E
 in the Sch M-2 column of the statement window.
If Schedule M-3 is needed in lieu of Schedule M-1 and you have book/tax differences that you want to increase Schedule M-2 and the shareholder's stock basis, enter amounts in the corresponding fields in the Book/Tax Differences section in the M3S-2 screen.
UltraTax CS calculates the shareholder's share of the S Corporation’s gain or loss on the disposal of assets for which a section 179 expense deduction was previously passed through to the shareholder. The shareholder’s share of the net gain transfers to page 1 of the Shareholder’s Basis Worksheet for all applicable shareholders when the
Transfer gain (loss) on disposal of Section 179 assets…
 field is marked (located in
Setup
,
1120 Corporation
,
Other Return Options
, the
Other
 tab), and the field in the
KSep
 screen is blank. The shareholder’s share of the net gain will also transfer to page 1 of the Shareholder’s Basis Worksheet when you enter a 1 in the
Transfer gain (loss) on disposal of Section 179 assets…
 field in the
KSep
 screen.
If you want to change the calculated amount, enter an amount in this field. If you don’t want any gain to show on the basis worksheet, enter zero in this field.
Enter the description and amount for items that decrease a particular shareholder's stock basis in these fields. If there are items that decrease all the shareholders' stock basis, go to the
KSep
 screen and enter the description and amount, and then enter
D
 in the Basis column. UltraTax CS then decreases the stock basis of each shareholder by an amount equal to the amount entered in the
KSep
 screen, multiplied by the respective shareholder's ownership percentage.
UltraTax CS doesn’t limit the amount entered in this field by the available basis. Therefore, the amount entered in this field can cause the shareholder's stock basis to reduce to less than zero. UltraTax/1120 prints a critical diagnostic message when the shareholder’s basis falls to less than zero. To avoid this, enter the limited amount in this field.
UltraTax CS calculates the shareholder's share of the S Corporation’s gain or loss on the disposal of assets for which a section 179 expense deduction was previously passed through to the shareholder. The shareholder’s share of the net loss transfers to page 2 of the Shareholder’s Basis Worksheet when the Transfer gain (loss) on disposal of Section 179 assets… field in the
KSep
 screen is blank. The shareholder’s share of the net loss transfers to page 2 of the Shareholder’s Basis Worksheet for all applicable shareholder when you enter a 1 in the
Transfer gain (loss) on disposal of Section 179 assets…
 field (located at
Setup
,
Product
,
General Information
,
Other Return Options
, the
Other
 tab, and the field in the
KSep
 screen.
If you want to change the calculated amount, enter an amount in this field. If you don’t want any loss to show on the basis worksheet, enter zero in this field.
UltraTax CS automatically calculates the gain recognized on excess non-dividend distribution. The gain transfers to the K-1 statements for Other information. If you want to change the calculated amount, enter an amount in this field. If you don’t want any gain to show in the K-1 statements, enter zero. UltraTax CS doesn’t transfer the gain on excess distributions to the K-1 statements when you enter zero in this field.

Loan tab

Enter the beginning of year loan basis. UltraTax CS proformas this amount from the prior-year end-of-year loan basis.
Enter the amount the shareholder loaned to the S Corporation in the current year.
Enter the description and amount for items that increase a shareholder's loan basis. If there are items that increase all of the shareholders' loan basis, open
screen KSep
 in the Schedule K folder, enter the description and amount, then enter
A
 in the
Basis
 column. UltraTax CS increases the loan basis of each shareholder by the amount entered on the
KSep screen
, multiplied by the respective shareholder's ownership percentage.
Enter the description and amount for items that decrease a shareholder's loan basis. If there are items that decrease all of the shareholders' loan basis, go to
screen KSep
, enter the description and amount, then enter
R
 in the
Basis
 column. UltraTax CS then decreases the loan basis of each shareholder by the amount entered on the
KSep screen
, multiplied by the respective shareholder's ownership percentage.
UltraTax CS doesn't limit the amount entered by the available basis. Therefore, the amount entered can cause the shareholder's loan basis to reduce to less than zero. UltraTax/1120 prints a critical diagnostic message when the shareholder’s basis falls to less than zero. To avoid this, enter the limited amount.
Enter the amount of outstanding shareholder loans to the S Corporation before any current-year loan repayments or current-year loans to the corporation. UltraTax CS proformas the amount entered, less any current-year loan repayments, plus any current-year loans to the corporation, to the following year.
Enter the S Corporation repayments of the shareholder loan in the current year. UltraTax CS uses the amount to calculate any gain recognized on repayment of the shareholder loan.
The loan basis restored calculates on the Shareholder's Loan Basis Restored Worksheet. To change the calculated amount, enter an amount.
UltraTax CS calculates the amount of the loan basis used in calculating the gain recognized on the repayment of shareholder loan. To change the calculated amount, enter an amount.
UltraTax CS calculates the gain recognized on the repayment of shareholder loan. The gain transfers to the
K-1 statements
 for
Other information
. To change the calculated amount, enter an amount. If you don't want any gain to show in the
K-1 statements
, enter
0
 (zero). The
Shareholder’s Basis Worksheet
 doesn't reflect amounts entered here.

Suspended Losses tab

Mark this checkbox if the shareholder is making an election in accordance with Regulation 1.1367-1(g). UltraTax CS decreases the basis by deductible items (for example, ordinary loss and Section 179 expense) before nondeductible, noncapital expenses. If you don't mark this field, UltraTax CS reduces the basis by the nondeductible noncapital expenses before reducing the basis by the deductible items. UltraTax CS proformas this field the following year.
UltraTax CS prints the election statement under Regulation 1.1367-1(g) in the shareholder's shareholder package unless you mark the
Suppress 1367 election statement
 checkbox.
Mark this checkbox to suppress printing the election statement under Regulation 1.1367-1(g). The Section 1367 election statement isn't a yearly election. Once you make the election, you don't need to make it again. UltraTax CS marks the checkbox when the client is proforma'd to prevent the election statement from printing the following year.
Mark this checkbox to have UltraTax CS share the following amounts from the Shareholder's Basis Worksheet with the 1040 client in UltraTax CS/1040.
  • Beginning of year stock basis from Page 1 of the
    Shareholder's Basis Worksheet
  • Beginning of year loan basis from Page 1 of the
    Shareholder's Basis Worksheet
  • Loan basis restored
  • Suspended losses from Page 2 of the
    Shareholder's Basis Worksheet
If this checkbox is not marked, the amounts listed previously are not shared with the 1040 client in UltraTax CS/1040.
Mark this checkbox to suppress the sharing of the following information from Page 1 of the
Shareholder Basis Worksheet
 to the 1040 client in UltraTax CS/1040.
  • Capital contributions
  • Other increases — Stock basis
  • Other decreases — Stock basis
  • Other increases — Loan basis
  • Other decreases — Loan basis
  • Beginning of year shareholder loan
  • Regulation 1.1367-1(g) election
  • Suppress 1367 election statement
  • Suppress proforma of nondeductible expenses
If you marked this checkbox and then decide that you want to share the previous information, clear the checkbox and print preview the S Corporation return. UltraTax CS shares the information with the 1040 client in UltraTax CS/1040.
Enter the nondeductible/noncapital expenses. UltraTax CS reduces basis by the amount entered before reducing the basis by the deductible items, unless you enter
X
 in
Regulation 1.1367-1(g) election
. In that case, UltraTax CS reduces the basis by the deductible items before the nondeductible/noncapital expenses.
Enter the suspended loss for these items. UltraTax CS calculates the amount of allowed loss by multiplying the basis available by a fraction, where the numerator is equal to the total loss amount (current-year plus suspended amount) for each deductible item, and the denominator is the sum of all deductible loss items (current-year plus suspended amount). This calculation is done for stock basis as well as loan basis.
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