How do I calculate Stock Basis

ckat11 · ‎April 14, 2022

Hello all,

I have been running my S-Corp (just me and my wife, I am 100% owner) since 2009.

I did not invest any money when I started, I did loan to business one time (40k in 2017), and business paid the loan back. All years have been profitable, this is the first year I had a loss to report. Turbotax is asking for Stock basis on form 7203, and the instructions seem all alien to me...

Does Quickbooks (Desktop + Payroll) have some functionality to calculate my Stock Basis?

JessT · ‎April 14, 2022

Hi there, ckat11.

We're unable to provide such calculations in QBDT Payroll. However, you may check reports like your balance sheet or inventory reports. I also recommend checking with your accountant, so they can help you with the calculation. You can find a ProAdvisor near you.

On the other hand, I found this article on the IRS website: S Corporation Stock and Debt Basis. You might need it.

If you have other questions in mind, feel free to go back to this thread.

Rainflurry · ‎April 15, 2022

@ckat11

The loan is irrelevant for computing your stock basis. If you have your previously issued K-1s, that will help.

Here is a great explanation by the IRS on how to calculate S-corp stock basis:

https://www.irs.gov/businesses/small-businesses-self-employed/s-corporation-stock-and-debt-basis

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