Form 7203 S Corporation Shareholder Stock and Debt Basis Limitatio

7203

S Corporation Shareholder Stock and
Debt Basis Limitations

Form
(December 2021)
Department of the Treasury
Internal Revenue Service

▶

OMB No. 1545-2302

▶ Attach to your tax return.
Go to www.irs.gov/Form7203 for instructions and the latest information.

Attachment
Sequence No. 203

Name(s) shown on return

Identifying number

Name of S corporation

Employer identification number

Stock block (see instructions) ▶

Part I

Shareholder Stock Basis

1
2
3a
b
c
d
e
f
g
h
i
j
k
l
m
4
5
6

Stock basis at the beginning of the corporation’s tax year . . . . . . . . . . . . . . .
Basis from any capital contributions made or additional stock acquired during the tax year . . . .
Ordinary business income (enter losses in Part III) . . . . . . . . .
3a
Net rental real estate income (enter losses in Part III)
. . . . . . . .
3b
Other net rental income (enter losses in Part III) . . . . . . . . . .
3c
Interest income . . . . . . . . . . . . . . . . . . . . .
3d
Ordinary dividends . . . . . . . . . . . . . . . . . . . .
3e
Royalties . . . . . . . . . . . . . . . . . . . . . . .
3f
Net capital gains (enter losses in Part III)
. . . . . . . . . . . .
3g
Net section 1231 gain (enter losses in Part III) . . . . . . . . . . .
3h
Other income (enter losses in Part III) . . . . . . . . . . . . . .
3i
Excess depletion adjustment . . . . . . . . . . . . . . . .
3j
Tax-exempt income . . . . . . . . . . . . . . . . . . .
3k
Recapture of business credits . . . . . . . . . . . . . . . .
3l
Other items that increase stock basis
. . . . . . . . . . . . .
3m
Add lines 3a through 3m . . . . . . . . . . . . . . . . . . . . . . . . . .
Stock basis before distributions. Add lines 1, 2, and 4 . . . . . . . . . . . . . . . .
Distributions (excluding dividend distributions)
. . . . . . . . . . . . . . . . . .
Note: If line 6 is larger than line 5, subtract line 5 from line 6 and report the result as a capital gain on
Form 8949 and Schedule D. See instructions.
7
Stock basis after distributions. Subtract line 6 from line 5. If the result is zero or less, enter -0-, skip
lines 8 through 14, and enter -0- on line 15 . . . . . . . . . . . . . . . . . . . .
8a Nondeductible expenses . . . . . . . . . . . . . . . . . .
8a
b Depletion for oil and gas . . . . . . . . . . . . . . . . . .
8b
c Business credits (sections 50(c)(1) and (5)) . . . . . . . . . . . .
8c
9
Add lines 8a through 8c . . . . . . . . . . . . . . . . . . . . . . . . . .
10
Stock basis before loss and deduction items. Subtract line 9 from line 7. If the result is zero or less,
enter -0-, skip lines 11 through 14, and enter -0- on line 15 . . . . . . . . . . . . . .
11
Allowable loss and deduction items. Enter the amount from line 47, column (c) . . . . . . . .
12
Debt basis restoration (see net increase in instructions for line 23) . . . . . . . . . . . .
13
Other items that decrease stock basis . . . . . . . . . . . . . . . . . . . . .
14
Add lines 11, 12, and 13 . . . . . . . . . . . . . . . . . . . . . . . . . .
15
Stock basis at the end of the corporation’s tax year. Subtract line 14 from line 10. If the result is
zero or less, enter -0. . . . . . . . . . . . . . . . . . . . . . . . . .

Part II

1
2

4
5
6

7

9
10
11
12
13
14
15

Shareholder Debt Basis
Section A—Amount of Debt (If more than three debts, see instructions.)
Description

16 Loan balance at the beginning of the corporation’s tax
year . . . . . . . . . . . . . . . . .
17 Additional loans (see instructions) . . . . . . .
18 Loan balance before repayment. Combine lines 16 and 17
19 Principal portion of debt repayment (this line doesn’t
include interest) . . . . . . . . . . . . . (
20 Loan balance at the end of the corporation’s tax year.
Combine lines 18 and 19 . . . . . . . . . .
For Paperwork Reduction Act Notice, see separate instructions.

Debt 1
Formal note
Open account
debt

Debt 2
Formal note
Open account
debt

)(

Cat. No. 56396V

)(

Debt 3
Formal note
Open account
debt

Total

)(

)

Form 7203 (12-2021)

Form 7203 (12-2021)

Part II

Page

2

Shareholder Debt Basis (continued)
Section B—Adjustments to Debt Basis

Description
Debt basis at the beginning of the corporation’s tax year
Enter the amount, if any, from line 17 . . . . . .
Debt basis restoration (see instructions) . . . . .
Debt basis before repayment. Combine lines 21, 22, and 23
Divide line 24 by line 18 . . . . . . . . . . .
Nontaxable debt repayment. Multiply line 25 by line 19
Debt basis before nondeductible expenses and losses.
Subtract line 26 from line 24 . . . . . . . . .
28 Nondeductible expenses and oil and gas depletion
deductions in excess of stock basis . . . . . . .
29 Debt basis before losses and deductions. Subtract line
28 from line 27. If the result is zero or less, enter -0- .
30 Allowable losses in excess of stock basis. Enter the
amount from line 47, column (d) . . . . . . . .

Debt 1

Debt 2

Debt 3

Total

21
22
23
24
25
26
27

31 Debt basis at the end of the corporation’s tax year.
Subtract line 30 from line 29. If the result is zero or
less, enter -0- . . . . . . . . . . . . . .

Section C—Gain on Loan Repayment
32 Repayment. Enter the amount from line 19 . . . .
33 Nontaxable repayments. Enter the amount from line 26
34 Reportable gain. Subtract line 33 from line 32 . . .

Part III

Shareholder Allowable Loss and Deduction Items
(a) Current
(b) Carryover
year losses
amounts
and deductions (column (e))
from the
previous year

Description

35
36
37
38
39
40
41
42
43
44
45
46

Ordinary business loss . . .
Net rental real estate loss . .
Other net rental loss . . . .
Net capital loss . . . . .
Net section 1231 loss . . .
Other loss . . . . . . .
Section 179 deductions . . .
Charitable contributions
. .
Investment interest expense .
Section 59(e)(2) expenditures .
Other deductions . . . . .
Foreign taxes paid or accrued

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(c) Allowable
loss from
stock basis

(d) Allowable
loss from
debt basis

(e) Carryover
amounts

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47 Total loss. Combine lines 35 through 46 for
each column. Enter the total loss in column (c)
on line 11 and enter the total loss in column
(d) on line 30 . . . . . . . . . . .
Form

7203

(12-2021)