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) 

Form 7203 (12-2021)                                                                                                 Page  2 
Part II  Shareholder Debt Basis (continued)
                                         Section B—Adjustments to Debt Basis
                        Description                                   Debt 1        Debt 2        Debt 3           Total
21 Debt basis at the beginning of the corporation’s tax year
22 Enter the amount, if any, from line 17  . .  .     . .  .
23 Debt basis restoration (see instructions)  . .     . .  .
24 Debt basis before repayment. Combine lines 21, 22, and 23
25 Divide line 24 by line 18 . .  . . .  .   .  .     . .  .
26 Nontaxable debt repayment. Multiply line 25 by line 19  
27 Debt basis before nondeductible expenses and losses. 
   Subtract line 26 from line 24  . . .  .   .  .     . .  .
28 Nondeductible  expenses  and  oil  and  gas  depletion 
   deductions in excess of stock basis . .   .  .     . .  .
29 Debt basis before losses and deductions. Subtract line 
   28 from line 27. If the result is zero or less, enter -0-  .
30 Allowable  losses  in  excess  of  stock  basis.  Enter  the 
   amount from line 47, column (d)  . .  .   .  .     . .  .
31 Debt basis at the end of the corporation’s tax year. 
   Subtract  line  30  from  line  29.  If  the  result  is  zero  or 
   less, enter -0-  . . .   .  .  . . .  .   .  .     . .  .
                                         Section C—Gain on Loan Repayment
32 Repayment. Enter the amount from line 19     .     . .  .
33 Nontaxable repayments. Enter the amount from line 26
34 Reportable gain. Subtract line 33 from line 32  .    .  .
Part III Shareholder Allowable Loss and Deduction Items
                                                        (a) Current   (b) Carryover (c) Allowable (d) Allowable (e) Carryover 
                                                        year losses   amounts       loss from     loss from     amounts
                      Description                     and deductions  (column (e))  stock basis   debt basis
                                                                      from the 
                                                                      previous year
35 Ordinary business loss  .   .  . . .  .   .  .
36 Net rental real estate loss  . . . .  .   .  .
37 Other net rental loss  . .  .  . . .  .   .  .
38 Net capital loss   . .   .  .  . . .  .   .  .
39 Net section 1231 loss  .    .  . . .  .   .  .
40 Other loss  .    . . .   .  .  . . .  .   .  .
41 Section 179 deductions .    .  . . .  .   .  .
42 Charitable contributions    .  . . .  .   .  .
43 Investment interest expense  .   . .  .   .  .
44 Section 59(e)(2) expenditures  . . .  .   .  .
45 Other deductions  .  .   .  .  . . .  .   .  .
46 Foreign taxes paid or accrued    . .  .   .  .
47 Total  loss.  Combine  lines  35  through  46  for 
   each column. Enter the total loss in column (c) 
   on line 11 and enter the total loss in column 
   (d) on line 30  .  . .   .  .  . . .  .   .  .
                                                                                                         Form  7203  (12-2021)