I am trying to track basis for a client that is 50% of S corp. The K-1's had income all these years and no adjustments etc. just simple K-1's. Then in 2020 had a loss and used up all his stock basis AND debt basis of $2,530 and then had a loss carryover of $5,607. Then in 2021 K-1 had income of $23,142. The loan amount has remained the same all these years. So does the debt basis get restored first?

Here is my Calculation. For 2021 income of $23,142 less Prior year loss of 5,607 and less debt restored 2,530 = Then Stock basis would be $15,005 And then debt basis= 2,530 ?

Is this correct if there is no other figures on the K-1. TIA

Here is my Calculation. For 2021 income of $23,142 less Prior year loss of 5,607 and less debt restored 2,530 = Then Stock basis would be $15,005 And then debt basis= 2,530 ?

Is this correct if there is no other figures on the K-1. TIA

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