Hi again,
Anyone else have a problem with Proseries in that the S-Corporation shareholder basis ordering rules don't flow through to Form 6198?
Here's the thing. On the S-Coporation basis statement we have basis being used up first for distributiions taken, then elected to reduce basis by deductible expenses first, then nondeductible expenses. If not enough basis, the latter gets suspended. This is the proper way to do it.
When you go to the 1040 Form 6198, how do you tell it to honor the ordering rules of basis? Assume basis and at-risk are the same (usually are for S-Corporations).
If we do nothing, the at-risk basis is going to use up the deductible and nondeductible expenses before it reduces at-risk by the distributions. Do you all override it, or just accept the default ordering? Thanks.
Regards,
Joe
Anyone else have a problem with Proseries in that the S-Corporation shareholder basis ordering rules don't flow through to Form 6198?
Here's the thing. On the S-Coporation basis statement we have basis being used up first for distributiions taken, then elected to reduce basis by deductible expenses first, then nondeductible expenses. If not enough basis, the latter gets suspended. This is the proper way to do it.
When you go to the 1040 Form 6198, how do you tell it to honor the ordering rules of basis? Assume basis and at-risk are the same (usually are for S-Corporations).
If we do nothing, the at-risk basis is going to use up the deductible and nondeductible expenses before it reduces at-risk by the distributions. Do you all override it, or just accept the default ordering? Thanks.
Regards,
Joe