ProConnect HelpIntuit HelpIntuit

Marking Schedule E, line 28 (e) for basis computation in Lacerte

by Lacerte Tax 2023 Updated 11 months ago

This article will help with reporting for individual Schedule E (Form 1040), Supplemental Income and Loss, Page 2, Part II, Line 28 (e): Check if basis computation is required.

This box should be selected if you report a loss, receive a distribution, dispose of stock, or receive a loan repayment from an S corporation along with an attachment showing the required basis computation.

Reporting a loss:

This will be selected automatically when a loss is reported.

Receive a distribution:

This will be selected when distributions are entered as follows:

  • Go to Screen 20, Passthrough K-1's.
  • Select S Corporation Information from the top left menu panel.
  • Select Line 16 - Items Affecting Shareholder Basis.
  • Enter amounts in the field (16D) Distributions.

Dispose of stock:

To select this box when reporting a disposition of stock, follow these steps:

  1. Go to Screen 17, Dispositions.
  2. Select Schedule D, 4797, etc.) from the top left menu panel.
  3. Enter the applicable information in the subsection Dispositions (Schedule D, 4797, etc.).
    • Required entries include Date acquired, Date sold and Sales price.
  4. From the lower left sections menu, select Corresponding Activity Information - Passive (8582) / At-Risk (6198) / Investment Tax (8960) / Qualified Business Income (QBI).
  5. In the field Form number of related activity select Schedule E (S corporation) from the dropdown menu.
  6. In the field Activity name or number select the applicable S Corp passthrough activity for this disposition.
  7. Scroll down to the next section Disposition of Partnership Interest or S Corporation Stock (8960).
  8. Select the box Disposition of partnership interest or S corporation stock (8960).

Receipt of loan repayment:

This will be selected when an amount is entered as follows:

  • Go to Screen 20, Passthrough K-1's.
  • Select S Corporation Information from the top left menu panel.
  • Select Line 16 - Items Affecting Shareholder Basis.
  • Enter amounts in the field (16E) Repayment of loans from shareholder.

For help generating Form 7203:

See How to complete Form 7203 in Lacerte for a step-by-step guide to completing the basis limitation and shareholder debt information.

Lacerte Tax

Sign in now for personalized help

Ask questions, get answers, and join our large community of Intuit Accountants users.

More like this

Dynamic AdsDynamic Ads