mhkdgal
Level 4
12-23-2020
06:53 PM
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Taking over tax prep work for an S-Corp with two shareholders. Shareholders want to take year-end distributions from the corporation. Where can I find the shareholder's stock basis is the s-corp to make sure they don't distribute more than their basis and end up with a taxable distribution?
Distributions were taken last year and the box is checked on the Schedule E stating that the basis calculation must be attached, but the prior CPA did not actually calculate or attach the shareholder's basis. Where else might I obtain this information?
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sjrcpa
Level 15
12-23-2020
07:14 PM
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Get their initial and subsequent investments in the S Corp and all years' K-1s and calculate their basis.
The more I know the more I don’t know.
itonewbie
Level 15
12-23-2020
07:26 PM
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Sounds like billable work to me.
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Still an AllStar
Still an AllStar
Level 15
12-23-2020
07:57 PM
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Maybe he attached it to the Efiled return but forgot to include it with the client copies? might be worth a call to the past preparer.
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