Scorp Basis Mistake

Collapse
X
 
  • Time
  • Show
Clear All
new posts
  • Taxadvisor VA
    Senior Member
    • Feb 2013
    • 122

    #1

    Scorp Basis Mistake

    My bad as I recently discovered that I didn't do a shareholder basis adjustment review on a 2011-1120S and the loss claimed was overstated.
    An amended 1120S return needs to be filed.
    What would you send in?
    - Shareholder Basis amended statement?
    - Amended explanation worksheet?
    - Amend K1?

    I don't believe you need to send in page1,2 (Ord Inc Loss Details), page 3-5 (Schedule K,L,M-1), as what changed was the loss claimed and the figures provided. I'm thinking along the lines of a Schedule E where too much loss was claimed due to limitations and you adjust the amount of the loss and not the rental income/expense figures.
    I always think that less is better anyway but I don't want the amended 1120S to get kicked back.

    What do you think?

    Thanks and please be specific in your reply,

    Taxadvisor VA
  • DaveinTexas
    Senior Member
    • Jan 2006
    • 731

    #2
    Basis only error?

    Was there only a basis error or an error on the 1120S. No need to file an amended K1 or 1120S if only a basis issue.

    Your post is a little confusing. It sounds like you merely need to correct the SH basis worksheet and possibly the shareholder 's return if he/she overstated flow through loss.
    Circular 230 Disclosure:

    Don't even think about using the information in this message!

    Comment

    • Taxadvisor VA
      Senior Member
      • Feb 2013
      • 122

      #3
      DaveinTexas

      Originally posted by DaveinTexas
      Was there only a basis error or an error on the 1120S. No need to file an amended K1 or 1120S if only a basis issue.

      Your post is a little confusing. It sounds like you merely need to correct the SH basis worksheet and possibly the shareholder 's return if he/she overstated flow through loss.
      Thanks for the reply. It is only a basis error and nothing else.
      Best Regards,
      Taxadvisor VA

      Comment

      • DaveinTexas
        Senior Member
        • Jan 2006
        • 731

        #4
        Ah, I see

        Then the only change that needs to be some is the shareholder's 1040X and the form 6198 if losses are limited. Also, if the shareholder took distributions in excess of basis, there will be a schedule D to file with the Sch D.
        Circular 230 Disclosure:

        Don't even think about using the information in this message!

        Comment

        • Taxadvisor VA
          Senior Member
          • Feb 2013
          • 122

          #5
          Basis error correction

          Originally posted by DaveinTexas
          Then the only change that needs to be some is the shareholder's 1040X and the form 6198 if losses are limited. Also, if the shareholder took distributions in excess of basis, there will be a schedule D to file with the Sch D.
          Thanks Dave! Very helpful and informative.

          Comment

          • DaveinTexas
            Senior Member
            • Jan 2006
            • 731

            #6
            You are most welcome!

            Glad to help.
            Circular 230 Disclosure:

            Don't even think about using the information in this message!

            Comment

            Working...