1120s K1 basis historically wrong.

Technical topics regarding tax preparation.
#1
Posts:
1
Joined:
24-Mar-2023 11:51am
Location:
CA
Hello;

I have a new client single member S Corp and I notice, in the last few years the K1 stock and debt basis has not been historically figured correctly and there have been years with net losses. Eyeballing it I can see the losses would be allowed. Amending multiple years with no change to tax seems not the right course of action or is it? Or can I just fix the basis in the current return? I am not sure best procedure.
 

#2
Posts:
1716
Joined:
28-Jul-2017 12:08pm
Location:
Somewhere out there...
how big is the issue?
 

#3
sjrcpa  
Posts:
6477
Joined:
23-Apr-2014 5:27pm
Location:
Maryland
Just fix the basis.
 

#4
Posts:
257
Joined:
15-Nov-2021 8:00pm
Location:
Oklahoma
Amending is not required. Correct the stock and debt bases in the current year and move forward.
 

#5
Posts:
268
Joined:
23-Jan-2015 11:10pm
Location:
michigan
Verytaxing wrote:Amending is not required. Correct the stock and debt bases in the current year and move forward.



I agree with just fixing the current stock and loan basis as of the current time if you're sure the prior losses would have been allowed.
 


Return to Taxation



Who is online

Users browsing this forum: AlexCPA, Google [Bot], SlipperyPencil and 105 guests