S Corp shareholder basis

Forum|Forum|5 years ago
June 21, 2021
1 reply
16 views

Hi,

I have recently learned that ProSeries does not keep track of stock basis on 1040 (I previously worked with CCH Axcess). I have a client with a S corp loss, but no basis. I do not know how I should enter K-1 with the loss in ProSeries so it generates correct amounts on SCH E. How do you keep track of basis if Proseries does not. I heard that other professionals keep a separate record for basis and unused losses. Everything in taxes is about basis(it affects QBI, charitable contributions) and I am surprised that Proseries is limited in this regard. Especially that now you are required to provide basis computation with SCH E if you report a loss or receive a loan repayment from an S corp or get a distribution. What do you do in this situation? What do you attach with 1040? Does Proseries offer any template for basis calc and unused losses? It adds so much extra work for the tax preparer. Do you charge extra your clients for basis calc?

I would appreciate your help.

Thank you,

ProSeries Professional

This topic has been closed for replies.

Best answer by TaxGuyBill

As you have seen, ProSeries is severely lacking in this regard, even to the point of negligence. Everything must be done manually.

You need to manually calculate and input the allowable amount into the K-1 worksheet.

You need to manually create a Basis statement.

You need to manually attach a PDF of that statement to the return.

When Basis is restored, you need to manually create a second K-1 worksheet to enter the allowable carryover losses.

T

TaxGuyBillAnswer

Level 15

As you have seen, ProSeries is severely lacking in this regard, even to the point of negligence. Everything must be done manually.

You need to manually calculate and input the allowable amount into the K-1 worksheet.

You need to manually create a Basis statement.

You need to manually attach a PDF of that statement to the return.

When Basis is restored, you need to manually create a second K-1 worksheet to enter the allowable carryover losses.

T

Tax08Author

Level 2

Thank you for taking the time to reply to my question. I am very disappointed that you need to do it all manually. I will probably have to look into other tax software next year.

C

ccarmona1

Level 2

What a joke. So disappointing.

That and a lack of knowledgeable customer services representatives. I am so disappointed. I literally pay intuit tens of thousands of dollars and I hate them.

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