S-Corp Basis Carryovers

Forum|Forum|5 years ago
January 27, 2021
1 reply
14 views

I have a S-Corp shareholder who had prior year carryover losses because of basis limitation including cash charitable contributions. When Lacerte was rolled from 2018 to 2019 the cash contribution carryover was changed to 'Noncash (and 50% cash pre-2018)'. Does anyone know why cash contributions carryover was changed to noncash? I cannot find anywhere in the IRS instructions that require this.

Thank you

Lacerte Tax

This topic has been closed for replies.

sjrcpa

Level 15

i think it was changed to the "(and 50% cash pre-2018)" part of that statement.

The more I know the more I don’t know.

D

DanWhiteheadAuthor

Level 2

Thank you for your reply. I understand it was moved there as part of the (and 50% cash pre-2018) but my questions is why? It shows up on the K-1 as a non-cash contributions and flows through to form 8283 on the individual return. Now the IRS is asking for the supporting documents for Form 8283! Do I just send the IRS copies of all prior year K-1's and explain that they were really cash contributions?

D

DanWhiteheadAuthor

Level 2

After contacting Intuit Tech support I received the following answer: The reason they show up as non cash in 2019 is we had to have somewhere to put the 50% carryovers when the 60% went into law. The 50% do not automatically flip to 60%, so we had to put them in the best possible place so they would not be lost.

Lacerte Support.

Sign up

Login with SSO

Let's get you signed in

Login with SSO