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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.
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 for all applicable shareholders when the Transfer gain (loss) on disposal of Section 179 assets… field in Setup 1120 Corporation > Other Return Options > Other tab is marked, and the field in Screen KSep is blank. The shareholder’s share of the net gain will also transfer to page 1 of the Shareholder’s Basis Worksheet when a 1 is entered in the Transfer gain (loss) on disposal of Section 179 assets… field in Screen KSep.
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 blank. The shareholder’s share of the net loss transfers to page 2 of the Shareholder’s Basis Worksheet for all applicable shareholder when a 1 is entered in the Transfer gain (loss) on disposal of Section 179 assets… field Setup > Product > General Information > Other Return Options > Other tab is marked, and the field in in Screen KSep.
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 for Other information. 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.
UltraTax CS
