S-CORP SHAREHOLDER BASIS TRACKER · RUNS IN YOUR BROWSER · NOTHING UPLOADED

Is my S corporation loss deductible, and is that distribution tax free?

Type in each year's K-1 figures. The tracker carries your stock basis, debt basis and suspended losses forward in the order Form 7203 uses, flags any distribution that exceeds basis, and shows how much basis would unlock a suspended loss.

An organising aid, not tax or legal advice, and not a filed form. Read the order basis is adjusted in, with a worked example what happens when distributions exceed basis, or why a loss is suspended and what frees it, or loan or capital contribution to deduct a loss, or which K-1 box feeds which line.

1. Where you start

Use the closing figures from your last basis worksheet, or what you paid for the stock if you are starting from the beginning. Leave blank for zero.

Have the Schedule K-1 in front of you?

Type each year's K-1 (Form 1120-S) box numbers instead of the columns below, one line per year, for example 2024: 1=90000, 4=200, 11=5000, 16A=500, 16C=2000, 16D=60000, 16E=15000. Boxes 1 to 10 are income, and a negative amount is a loss; boxes 11 and 12 are deductions; 16A and 16B tax-exempt income, 16C nondeductible expenses, 16D distributions, 16E loan repayments. The K-1 does not show what you contributed or lent, so add contrib= and loan=. Box numbers follow the current form; check them against yours.

2. One line per year

Columns, comma or tab separated: year, capital contributions and stock purchases, loans you made, loan repayments you received, income (negative is a loss), tax-exempt income, distributions, nondeductible expenses, losses and deductions. Amounts may use $, commas, (parentheses) or 1.5k.

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Preparing for several shareholders?

Paste a whole client list. Columns, comma or tab separated: shareholder, then the same columns as above starting with the year. A row with opening in the year column gives that shareholder's starting stock basis, debt basis, loan balance and suspended losses. You get one summary that puts the shareholders needing attention first, a combined CSV, and one printable file with a worksheet per shareholder.

Questions

What is S corporation shareholder basis?

It is your running tax investment in the S corporation: the stock basis (what you paid or contributed, plus your share of income, minus distributions and losses) and, separately, debt basis (money you lent the company directly). Basis decides how much of a K-1 loss you can deduct and how much of a distribution is tax free.

Do I need to file Form 7203?

Form 7203 generally goes with your return when you claim a deduction for an S corporation loss, receive a non-dividend distribution, dispose of stock, or receive a loan repayment, among other cases. Read the current instructions or ask your preparer; this tool only does the arithmetic in the same order.

What happens when my losses are bigger than my basis?

The excess is suspended, not lost. It carries forward indefinitely and becomes deductible in a later year when you add basis, through a stock purchase, a capital contribution, a direct loan from you to the company, or the company's own income.

Does a loan I personally guaranteed give me debt basis?

No. Debt basis comes from loans you made to the corporation yourself. Guaranteeing the company's bank loan, or lending through another entity, generally does not create it until you actually pay on the guarantee.

What if my distributions exceed my stock basis?

The excess is generally taxed as gain, capital gain if you held the stock more than a year. Distributions reduce stock basis before losses do, so a loss in the same year cannot make a distribution tax free.

Is my data uploaded anywhere?

No. The tracker runs in your browser. Nothing is sent to a server, there are no accounts, and entries are only kept on your device, in this browser's own storage, if you tick the remember box, or in a file you save.