Shareholder Information > Shareholder Basis dialog > Stock 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 access the electronic filing transmission feature in CS Connect.

Thomson Reuters is committed to proactively evolving our security features to help you protect your firm and your clients' data. For more information about multi-factor authentication, see Multi-factor authentication overview.

Use this tab to enter shareholder stock 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 stock basis information, open the Shareholder Basis dialog from the Shareholder Information window's Other Info tab, then click the Stock tab.

Fields & buttons

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

Enter the amount of capital contributions made by the shareholder during the year.

Enter the description and amount for items that increase a particular shareholder's stock basis in these fields. If there are items that increase all of the shareholders' stock basis, open Screen KSep in the Schedule K folder, enter the description and amount, and then enter I in the Basis column. UltraTax CS then increases the stock basis of each shareholder by an amount equal to the amount entered in Screen KSep, multiplied by the respective shareholder's ownership percentage. Also, if there are items in the Return deductions not on books field in Screen Ms in the Balance Sheet folder that increase all of the shareholders' stock bases, enter C, T, or E in the Sch M-2 column of the statement dialog.

If Schedule M-3 is required in lieu of Schedule M-1 and you have book / tax differences that you want to increase Schedule M-2 and the shareholder's stock basis, enter amounts in the corresponding fields in the Book / Tax Differences section in Screen M3S-2.

UltraTax CS calculates the shareholder's share of the S Corporation’s gain or loss on the disposal of assets for which a section 179 expense deduction was previously passed through to the shareholder. The shareholder’s share of the net gain transfers to page 1 of the Shareholder’s Basis Worksheet when the Transfer gain (loss) on disposal of Section 179 assets… field in Screen KSep is marked.

If you want to change the calculated amount, enter an amount in this field. If you do not want any gain to show on the on the basis worksheet, enter 0 (zero) in this field.

Note: UltraTax CS does not calculate the shareholder’s share of the net gain or loss on disposal of section 179 assets when the corporation has made a terminating election under IRC 1377(a)(2) or a qualifying disposition election under IRC 1.1368-1(g)(2)(i). Enter the shareholder’s share of the net gain in this field.

Enter the description and amount for items that decrease a particular shareholder's stock basis in these fields. If there are items that decrease all of the shareholders' stock basis, access Screen KSep and enter the description and amount, and then enter D in the Basis column. UltraTax CS then decreases the stock 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 stock 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.

UltraTax CS calculates the shareholder's share of the S Corporation’s gain or loss on the disposal of assets for which a section 179 expense deduction was previously passed through to the shareholder. The shareholder’s share of the net loss transfers to page 2 of the Shareholder’s Basis Worksheet when the Transfer gain (loss) on disposal of Section 179 assets… field in Screen KSep is marked.

If you want to change the calculated amount, enter an amount in this field. If you do not want any loss to show on the on the basis worksheet, enter 0 (zero) in this field.

Note: UltraTax CS does not calculate the shareholder’s share of the net gain or loss on disposal of section 179 assets when the corporation has made a terminating election under IRC 1377(a)(2) or a qualifying disposition election under IRC 1.1368-1(g)(2)(i). Enter the shareholder’s share of the net loss in this field.

UltraTax CS automatically calculates the gain recognized on excess non-dividend distribution. 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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