Harry Boscoe wrote:I'm late to the party. Sorry.
I can see on page 2 of the 2018 Form 1040 Schedule E that "you must check the box in column (e)" and attach a computation under certain conditions but now I'd like to ask where this *requirement* comes from and who it applies to to whom it applies.
Is it perfectly clear that it - the requirement - imposes a requirement on the passthrough entity, i.e., for it - the passthrough entity - to be responsible for tracking the shareholder/partners' tax bases *outside* the passthrough entity?
Or, is the requirement to maintain records and to attach the computation imposed on the shareholder of the S corp?
I'm not a whiner, but I want to know why I shouldn't whine about this "requirement"...
I see quite clearly a requirement imposed on the shareholder to maintain the information necessary to compute tax basis in the S corporation stock and debt, but I don't anywhere see a requirement to attach a computation of that tax basis to the shareholder's tax return (when certain conditions are met). Anybody?The requirement comes from 1.6000-1(a) and 1366(d)(1).
from his Post #10 above.And it has more or less always been required that basis calculations be sent with the return if there are losses or distributions.
Harry Boscoe wrote: I don't anywhere see a requirement to attach a computation of that tax basis to the shareholder's tax return (when certain conditions are met). Anybody?
actionbsns wrote:The question that has surfaced in my mind is this, if it has always been a requirement to attach a basis statement to a tax return, why haven't we gotten letters after returns were filed without them, requesting that they be sent?
I'm kind of thinking this is one more document that most likely has never been reviewed so it's never been missed.
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