Stockholder Loans in 1120S

[igbobennie]

I have a client who is closing his business.  In his 1120S he has a stockholder loan of $19,000.  How do I write this off and will it appear on his K-1 as Income?  He has a basis in the company of over $60,000. I am working in 2023 and I cannot pull up a form 7203, which when I research it said I needed one.

Thanks for your help.

[IRonMaN]

Why would it affect income instead of just adjusting his basis?

[igbobennie]

So I just adjust the basis and it does not effect his K-1 Income?  Thanks so much for your help.

[IRonMaN]

Yup

[ljr]

the 7203 is on the personal return - from the 1120s you print a basis report and use it to complete the form on the personal return