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S Corporation Shareholder Stock and OMB No. 1545-2302
Form 7203 Debt Basis Limitations
(December 2021) ▶ Attach to your tax return. Attachment
Department of the Treasury
Internal Revenue Service ▶ Go to www.irs.gov/Form7203 for instructions and the latest information. Sequence No. 203
Name(s) shown on return Identifying number
Name of S corporation Employer identification number
Stock block (see instructions) ▶
Part I Shareholder Stock Basis
1 Stock basis at the beginning of the corporation’s tax year . . . . . . . . . . . . . . . 1
2 Basis from any capital contributions made or additional stock acquired during the tax year . . . . 2
3 a Ordinary business income (enter losses in Part III) . . . . . . . . . 3a
b Net rental real estate income (enter losses in Part III) . . . . . . . . 3b
c Other net rental income (enter losses in Part III) . . . . . . . . . . 3c
d Interest income . . . . . . . . . . . . . . . . . . . . . 3d
e Ordinary dividends . . . . . . . . . . . . . . . . . . . . 3e
f Royalties . . . . . . . . . . . . . . . . . . . . . . . 3f
g Net capital gains (enter losses in Part III) . . . . . . . . . . . . 3g
h Net section 1231 gain (enter losses in Part III) . . . . . . . . . . . 3h
i Other income (enter losses in Part III) . . . . . . . . . . . . . . 3i
j Excess depletion adjustment . . . . . . . . . . . . . . . . 3j
k Tax-exempt income . . . . . . . . . . . . . . . . . . . 3k
l Recapture of business credits . . . . . . . . . . . . . . . . 3l
m Other items that increase stock basis . . . . . . . . . . . . . 3m
4 Add lines 3a through 3m . . . . . . . . . . . . . . . . . . . . . . . . . . 4
5 Stock basis before distributions. Add lines 1, 2, and 4 . . . . . . . . . . . . . . . . 5
6 Distributions (excluding dividend distributions) . . . . . . . . . . . . . . . . . . 6
Note: If line 6 is larger than line 5, subtract line 5 from line 6 and report the result as a capital gain on
Form 8949 and Schedule D. See instructions.
7 Stock basis after distributions. Subtract line 6 from line 5. If the result is zero or less, enter -0-, skip
lines 8 through 14, and enter -0- on line 15 . . . . . . . . . . . . . . . . . . . . 7
8a Nondeductible expenses . . . . . . . . . . . . . . . . . . 8a
b Depletion for oil and gas . . . . . . . . . . . . . . . . . . 8b
c Business credits (sections 50(c)(1) and (5)) . . . . . . . . . . . . 8c
9 Add lines 8a through 8c . . . . . . . . . . . . . . . . . . . . . . . . . . 9
10 Stock basis before loss and deduction items. Subtract line 9 from line 7. If the result is zero or less,
enter -0-, skip lines 11 through 14, and enter -0- on line 15 . . . . . . . . . . . . . . 10
11 Allowable loss and deduction items. Enter the amount from line 47, column (c) . . . . . . . . 11
12 Debt basis restoration (see net increase in instructions for line 23) . . . . . . . . . . . . 12
13 Other items that decrease stock basis . . . . . . . . . . . . . . . . . . . . . 13
14 Add lines 11, 12, and 13 . . . . . . . . . . . . . . . . . . . . . . . . . . 14
15 Stock basis at the end of the corporation’s tax year. Subtract line 14 from line 10. If the result is
zero or less, enter -0- . . . . . . . . . . . . . . . . . . . . . . . . . . 15
Part II Shareholder Debt Basis
Section A—Amount of Debt (If more than three debts, see instructions.)
Debt 1 Debt 2 Debt 3
Description Formal note Formal note Formal note Total
Open account Open account Open account
debt debt debt
16 Loan balance at the beginning of the corporation’s tax
year . . . . . . . . . . . . . . . . .
17 Additional loans (see instructions) . . . . . . .
18 Loan balance before repayment. Combine lines 16 and 17
19 Principal portion of debt repayment (this line doesn’t
include interest) . . . . . . . . . . . . . ( ) ( ) ( ) ( )
20 Loan balance at the end of the corporation’s tax year.
Combine lines 18 and 19 . . . . . . . . . .
For Paperwork Reduction Act Notice, see separate instructions. Cat. No. 56396V Form 7203 (12-2021)
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