S Corp 2021 shareholder basis limitations worksheet

Forum|Forum|4 years ago
May 31, 2022
2 replies
21 views

I am getting an error indicating I need to mark either a formal note or an open account debt in Part II Section A on the shareholder stock and debt basis limitation worksheet.

The shareholder has stock basis, even after deducting a huge loss, and he has no debt basis. I entered zeroes for the loan balances in Section A and zeroes for the debt basis in Section B hoping that would get rid of the error. The error still appears.

Why is PS requiring one of the debt boxes to be checked when there is no debt?

What do I need to do to get rid of the error, other than checking the open account debt box?

ProSeries Professional

This topic has been closed for replies.

Best answer by Samantha_at_Intuit

Hello,

To clear this error in the S Corporation module, please remove the zeroes that you have entered in Part II, Sections A and B. If any values are entered or calculated in Section A or Section B (including zeroes), the program will require you to check either the Formal note or Open account debt box in Section A. If the shareholder does not have any debt basis, then no amounts should be entered in Section A or Section B, and the program will not require a box to be checked in Section A.

S

Samantha_at_IntuitAnswer

Level 3

Hello,

To clear this error in the S Corporation module, please remove the zeroes that you have entered in Part II, Sections A and B. If any values are entered or calculated in Section A or Section B (including zeroes), the program will require you to check either the Formal note or Open account debt box in Section A. If the shareholder does not have any debt basis, then no amounts should be entered in Section A or Section B, and the program will not require a box to be checked in Section A.

D

david3Author

Level 7

Thank you. That worked.

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