Shareholder Information > Shareholder Basis dialog > Loan tab

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MFA required for electronic filing

Effective May 3rd, the 2017 version of UltraTax CS requires multi-factor authentication (MFA) to transmit e-files from CS Connect. Find out more.

Use this tab to enter shareholder loan basis. UltraTax CS combines the current-year loss and suspended loss amounts and determines the allowable amount based on the available stock and loan basis.

To update a shareholder's loan basis information, open the Shareholder Basis dialog from the Shareholder Information window's Other Info tab, then click the Loan tab.

Fields & buttons

Enter the beginning of year loan basis. UltraTax CS proformas this amount from the prior-year end-of-year loan basis.

Enter the amount the shareholder loaned to the S Corporation in the current year.

Enter the description and amount for items that increase a shareholder's loan basis in these fields. If there are items that increase all of the shareholders' loan basis, open Screen KSep in the Schedule K folder, enter the description and amount, and then enter A in the Basis column. UltraTax CS then increases the loan basis of each shareholder by an amount equal to the amount entered in Screen KSep, multiplied by the respective shareholder's ownership percentage.

Enter the description and amount for items that decrease a shareholder's loan basis in these fields. If there are items that decrease all of the shareholders' loan basis, access Screen KSep, enter the description and amount, and then enter R in the Basis column. UltraTax CS then decreases the loan basis of each shareholder by an amount equal to the amount entered in Screen KSep, multiplied by the respective shareholder's ownership percentage.

UltraTax CS does not limit the amount entered in this field by the available basis. Therefore, the amount entered in this field can cause the shareholder's loan basis to be reduced below zero. UltraTax/1120 prints a critical diagnostic message when the shareholder’s basis falls below zero. To avoid this, enter the limited amount in this field.

Enter the amount of outstanding shareholder loan to the S Corporation before any current-year loan repayments or current-year loans to the corporation. UltraTax CS proformas the amount entered in this field, less any current-year loan repayments, plus any current-year loans to the corporation, to the following year. For more information, see Shareholder Basis calculations.

Enter the S Corporation repayments of the shareholder loan in the current year. UltraTax CS uses the amount to calculate any gain recognized on repayment of the shareholder loan. For more information, see Shareholder Basis calculations.

The loan basis restored is calculated on the Shareholder's Loan Basis Restored Worksheet. If you want to change the calculated amount, enter an amount in this field. For more information, see Shareholder Basis calculations.

UltraTax CS automatically calculates the amount of the loan basis used in calculating the gain recognized on the repayment of shareholder loan. If you want to change the calculated amount, enter an amount in this field. For more information, see Shareholder Basis calculations.

UltraTax CS automatically calculates the gain recognized on the repayment of shareholder loan. The gain transfers to the K-1 statements, Box 17, Code V. If you want to change the calculated amount, enter an amount in this field. If you do not want any gain to show in the K-1 statements, enter 0 (zero). For more information, see Shareholder Basis calculations.

Related topic: Shareholder Information > Shareholder Basis dialog

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