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Marking Schedule E, line 28 (e) for basis computation in Lacerte
by Intuit• Updated 1 year 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:
- Go to Screen 17, Dispositions.
- Select Schedule D, 4797, etc.) from the top left menu panel.
- Enter the applicable information in the subsection Dispositions (Schedule D, 4797, etc.).
- Required entries include Date acquired, Date sold and Sales price.
- From the lower left sections menu, select Corresponding Activity Information - Passive (8582) / At-Risk (6198) / Investment Tax (8960) / Qualified Business Income (QBI).
- In the field Form number of related activity select Schedule E (S corporation) from the dropdown menu.
- In the field Activity name or number select the applicable S Corp passthrough activity for this disposition.
- Scroll down to the next section Disposition of Partnership Interest or S Corporation Stock (8960).
- 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.