Enter Reg. 1.1367-1(g) for an individual return
Internal Revenue Code (IRC) Reg. 1.1367-1(g) explains adjustments to the basis of a shareholder's stock in an S Corporation. This code section applies to shareholder basis, not at-risk basis. IRC Section 1367 lets a shareholder elect to reduce the shareholder basis by items of loss or deduction (for example, ordinary loss and Section 179 expense) before nondeductible noncapital expenses.
Follow these steps to enter a Reg. 1.1367-1(g) election for a 1040 return.
note
UltraTax CS will proforma this election to the following year. If you don't designate this election, UltraTax CS reduces the basis by the nondeductible noncapital expenses before reducing the basis by deductible items.
- Go to the SBasis1 screen in the K1 1065, 1120S folder for the K-1 unit.
- Mark theRegulation 1.1367-1(g) electioncheckbox. This will automatically print an election statement with the individual return.noteMarking the election checkbox will automatically mark theCalculate Shareholder Basis Worksheetcheckbox.
