Preparing New IRS Form 7203: S Corp Shareholder Stock Basis, Debt Basis & More

Event: Live Webinar
Event Date: May 21, 2024
Presenter: Jason T. Dinesen
Event Time: 1 PM EST
Duration:60 Minutes


Form 7203 is the new reporting form required by the IRS to show a shareholder basis in an S-corporation. This new form must be filed on the personal tax return (Form 1040) of most shareholders, starting with 2021 returns.

Form 7203 and its independent instructions are designed to replace the three-part Worksheet for Figuring a Shareholder’s Stock and Debt Basis and its related instructions that were formerly included in the Shareholder’s Instructions for Schedule K-1 (Form 1120-S).

While the S corporation’s basis calculations remain intact, the new form demands additional information to substantiate and justify the basis computations. As the form deals with S company stock and debt basis, some observers are under the impression that it is filed with the 1120S business return.

Nonetheless, the form will be included in a shareholder’s income tax return if any of the following are true of the S corporation:

  • The shareholder sells his/her shares of stock during the tax year.
  • The shareholder receives a payout from the S corporation.
  • The shareholder receives a loan payback from the S corporation during the tax year.
  • The shareholder claims a loss-related deduction.

Session Highlights:

  • What is Basis?
  • Analyze how the S-corporation basis differs from the partnership basis.
  • Identify whose responsibility, it is to track basis – it`s not the entity`s responsibility.
  • Analyze the steps in calculating the basis of an S-corporation.
  • Differentiate types of loans from shareholders and those loans affect the basis.
  • Review when the 7203 Form must be filed.
  • Discuss options for reconstructing the basis, if prior information doesn`t exist or is unreliable.

Learning Objectives:

S corporation shareholders use Form 7203 to figure out the potential limitations of their share of the S corporation’s deductions, credits, and other items that can be deducted from their individual returns. Beginning with the 2021 tax year, Form 7203 replaced the worksheet. The draft Form 7203 for the tax year 2022 also had some changes.

Who Should Attend:

  • CPAs
  • Tax Practitioners
  • Tax Preparers Managers
  • Bookkeepers & Accountants
  • Tax Consultants
  • Tax Professionals who want to understand everything about the new Form 7203.

Speaker Profile:

Jason Dinesen (EA, LPA) is a tax nerd,entrepreneur, tax expert and a well-known presenter of continuing education courses. Known for his sharp tax interpretations, he is one of the quickest to bring the analysis of the latest tax updates and IRS guidance to the professional community. Jason has coached over 200,000 accounting, tax, and HR professionals on various topics of accounting, individual taxation, corporate taxation, professional ethics and much more.

He has presented over dozens of webinars on Form 1099 (for 10 years on this subject!); marriage in the tax code; tax updates; the new Form W-4, payroll updates, filing status, tax credit and other issues relating to the modern-day household setting.

He also teaches 2 classes at Simpson College, Individual Income Tax and Business Analytics.

Jason always had a knack for radio shows and has and regularly features as an anchor for Radio Iowa.

Jason was born and raised in Iowa and has a degree in corporate communications from Simpson College in Indianola. He has a big family that includes his wife, two sons, 4 cats and 2 dogs. His other hobbies include being a season ticket holder to University of Iowa football.