How are you handling the new basis requirement found at the top of Sch E Page Two? As an FYI, I was unable to locate this same verbiage in the 2018 Sch E instructions...is this limited to ProSeries?
“If you report a loss, receive a distribution, dispose of stock, or receive a loan repayment from an S-Corp, you must check the box in column (e) on line 28 and attach the required basis computation. If you report a loss from an at-risk activity for which any amount is not at risk, you must check the box in column (f) on line 28 and attach form 6198.”
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I haven't yet found out the source for this change. But at the IRS National Tax Forum the presenter (an IRS attorney) was harping on it pretty heavily. I think it's not always mandatory, just if there are any losses or distributions (so just very nearly almost always mandatory?) What he said is that they want to see that we're getting the ordering right for applying losses, distributions, NDE, etc. Commentary, etc. may have been slightly different in my live seminar vs. the one transcripted/recorded but if you're curious, here's the transcript:
https://irstaxforumsonline.com/sites...transcript.pdf
Jump to the middle of page 4 (or just search for the word "attach") and read from there.
And/or you can "audit" the seminar video here:
https://irstaxforumsonline.com/node/12854/auditview
Over the summer I tinkered with my S Corp basis spreadsheet but never quite got it into a format that I liked so it's still in my "to do" pile (along with copies of the TTB worksheet and worksheets from various other sources (IRS/Drake/ProSeries) that end up being slightly different in their presentation.) I was trying to facilitate the election of NDE ordering, AMT basis, state basis (which may be different due to bonus depreciation), etc. Ended up with too many complications that only apply in certain circumstances. I don't have a lot of S Corps so I may just abandon the attempt to create a standardized template for this and just have a unique spreadsheet for each entity with lines that are appropriate for each year.
Rick
I haven't yet found out the source for this change. But at the IRS National Tax Forum the presenter (an IRS attorney) was harping on it pretty heavily. I think it's not always mandatory, just if there are any losses or distributions (so just very nearly almost always mandatory?) What he said is that they want to see that we're getting the ordering right for applying losses, distributions, NDE, etc. Commentary, etc. may have been slightly different in my live seminar vs. the one transcripted/recorded but if you're curious, here's the transcript:
https://irstaxforumsonline.com/sites...transcript.pdf
Jump to the middle of page 4 (or just search for the word "attach") and read from there.
And/or you can "audit" the seminar video here:
https://irstaxforumsonline.com/node/12854/auditview
Over the summer I tinkered with my S Corp basis spreadsheet but never quite got it into a format that I liked so it's still in my "to do" pile (along with copies of the TTB worksheet and worksheets from various other sources (IRS/Drake/ProSeries) that end up being slightly different in their presentation.) I was trying to facilitate the election of NDE ordering, AMT basis, state basis (which may be different due to bonus depreciation), etc. Ended up with too many complications that only apply in certain circumstances. I don't have a lot of S Corps so I may just abandon the attempt to create a standardized template for this and just have a unique spreadsheet for each entity with lines that are appropriate for each year.
Rick
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