What you need BasisCalc?
Starting with 2018 tax returns, S corporation shareholders who are claiming a deduction for pass-through losses must attach a statement to their return which show the computation of adjusted of corporate stock and any debt owed to the shareholder by the S corporation.
Learn more on the IRS website: About Form 1120-S, U.S. Income Tax Return for an S Corporation.
Ideally, the S corporation would provide you with a basis statement to attach to your return. In some cases, you may receive such statements but it is the responsibility of the shareholder, not the corporation, to track shareholder basis.
The S corporation may not have all the information necessary to prepare your basis statement. If you purchased your shares from a previous owner, your purchase price would be your beginning basis, but the S corporation tax return preparer may not have that information.
Also, only income items that you actually report on your tax return increase your basis. If certain items were inadvertently omitted from a previous year’s return, those missing items should not be included in your basis calculation.
BasisCalc makes it easy for you to prepare and track your basis from year to year. Save the basis report to a PDF and attach it directly to your e-filed tax return to meet the new basis reporting requirements.