Mark the checkbox on Schedule E, line 28e

You need to mark the checkbox on Schedule E, line 28e, if you report a loss, receive a distribution, dispose of stock, or receive a loan repayment from an S Corporation.
If any of the following conditions are true, UltraTax CS produces Form 7203, S Corporation Shareholder Stock and Debt Basis Limitations, and marks the Schedule E, line 28e checkbox.
  • The S Corporation has an aggregate loss or prior year suspended losses deducted on the return.
  • You mark
    Shares sold or disposed during the year
    on the K1 screen.
  • You enter amounts in the
    Property distributions
    or
    Repayment of loans from shareholders
    fields on the K1-5 screen.
  • You mark
    Calculate Shareholder Basis Worksheet
    on the SBasis1 screen.
Refer to the Schedule E instructions for more information on these reporting requirements.
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