New (tax) year, new help!

Fixed Assets and UltraTax CS 2023 help is now on Help and Support. We're still moving articles, but you can find most content for the 2023 tax year there. Continue using the Help & How-To Center for tax years 2022 and older.

Question

How do I use the fields in the Loan tab?

Answer

Use the fields in the View > Shareholder Information > Other Info > Shareholder Basis > Loan tab to calculate the shareholder's loan basis, and any gain on repayment of a shareholder loan.

• Beginning of year loan basis: This field represents the shareholders' loan basis at the beginning of the tax year. This amount will not be the same as the shareholder loan to the corporation if loan basis was reduced by prior year losses.
• Loans to corporation: This field represents the current year loans the shareholder made to the S Corporation, if any.
• Beginning of year shareholder loan: This field represents the outstanding shareholder loan to the S Corporation as of the beginning of the year, before any current-year loan repayments, and before any current-year loans to the corporation.

  UltraTax CS/1120 uses the beginning of year shareholder loan to calculate the gain on shareholder loan repayments and the loan basis to restore. UltraTax CS/1120 also uses the amount to calculate the principal amount of loan owed to the shareholder at the end of the year, displayed on page 1 of the Shareholder's Basis Worksheet.

• Loan repayments: This field represents the current year S Corporation repayments on the shareholder loan, if any.
• Loan basis restored (Force): UltraTax CS/1120 calculates the loan basis to restore based on the data you enter in the return. Refer to the Shareholder's Loan Basis Restored Worksheet for the detail of this calculation.

  Enter an amount in this field if you want to change the calculated amount shown on the shareholder's basis worksheet. When you enter an amount in the Loan basis restored (Force) field, UltraTax CS/1120 will no longer calculate the Shareholder's Loan Basis Restored Worksheet.

• Basis used in calculating gain on repayment (Force): UltraTax CS/1120 calculates the shareholder's loan basis used in calculating the gain recognized on the repayment of a shareholder loan.

  Enter an amount in this field if you want to change the amount the used to calculate the gain on the repayment of the shareholder loan. See How does UltraTax CS/1120 calculate the gain recognized on repayment of a shareholder loan when the shareholder has more than one loan to the S Corporation? for more information on how to use this field.

• Gain on repayment on shareholder loan (Force): UltraTax CS/1120 calculates the gain recognized on the repayment of shareholder loan based on the data you enter in the return. Refer to the bottom portion of the shareholder's basis worksheet for the detail of this calculation. The gain amount also appears in the K-1 statements, Box 17 code for Other Information.

  Enter an amount, including zero, in this field if you want to change the amount that appears in the K-1 statements. The gain on repayment calculated on the Shareholder's Basis Worksheet will not change when an amount is entered in the Gain on repayment on shareholder loan (Force) field.

Was this article helpful?

Yes No

Submit