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S Corp Debt Basis Restoration

HenryLI
Level 1

How do I enter debt basis restoration on a 2023 Lacerte S Corp return? 

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2 Comments 2
Karl
Level 8
Level 8

I would expect that it would happen automatically when the corporation has profits.  Debt basis gets restored first, before stock basis.  Did your client have a profit year, and are you not seeing debt basis restored on the 7203?

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sjrcpa
Level 15

You don't. It is computed at the shareholder level on their 1040.

The more I know, the more I don't know.