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Information on shareholder basis can be found in the instructions for Schedule K-1 (Form 1120S).

Per the Shareholder's Instructions for Schedule K-1 (Form 1120S), page 2:

Basis Rules
Generally, the deduction for your share of aggregate losses and deductions reported on Schedule K-1 is limited to the basis of your stock (determined with regard to distributions received during the tax year) and loans from you to the corporation. For details and exceptions, see section 1366(d). The basis of your stock is generally figured at the end of the corporation's tax year. Any losses and deductions not allowed this year because of the basis limit can be carried forward indefinitely and deducted in a later year subject to the basis limit for that year.

You are responsible for keeping the information needed to figure the basis of your stock in the corporation. Schedule K-1 provides information to help you figure your stock basis at the end of each corporate tax year. The basis of your stock (generally, its cost) is adjusted as follows and, except as noted, in the order listed. In addition, basis may be adjusted under other provisions of the Internal Revenue Code. You can generally use the Worksheet for Figuring a Shareholder's Stock Basis (on page 3 of these instructions) to figure your aggregate stock basis.

To navigate to the Worksheet for Figuring a Shareholder's Stock Basis:

Online:
  1. Sign in to your TaxAct Online return
  2. Click My Return on the right side of the screen
  3. Click Print Center, then click the Custom tab
  4. Click on the checkbox(es) to the left of the item(s) (the top section lists individual forms and schedules)  or  (the bottom section lists documents received or worksheets) which you wish to view or print (you may need to scroll down in the section to locate the item(s))
  5. Click the Print button and then click the PDF link. The item will appear in a PDF read-only format. At that time you can click the printer icon on the screen to actually print, or close the window without printing.
  6. NOTE: If, after you click Print in Step 5 above, you are directed to the Payment Option screen, you will need to process the product fees prior to printing. 

Desktop:
  1. Start your TaxAct Desktop program
  2. Click the Forms button in the top left corner
  3. Expand the Federal folder and then expand the Forms and Schedules Worksheets folder
  4. Scroll down to the worksheet Schedule K-1 - Shareholder's Basis Worksheet
  5. Select the specific Shareholder Stock Basis Worksheet needed

    NOTE: If, after you click Print in Step 5 above, you are directed to the Payment Option screen, you will need to process the product fees prior to printing. 



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