Form 7203 and its separate instructions are developed to replace the 3-part Worksheet for Figuring a Shareholder’s Stock and Debt Basis and its related instructions formerly found in the Shareholder's Instructions for Schedule K-1 (Form 1120-S).
To access Form 7203 in an S-Corporation return, from the main menu of the return (Form 1120-S), select:
- Schedule K - Distributive Share Items
- Schedule K-1 Input - Select a Shareholder and select Edit
- Shareholder's Basis Worksheet (7203)
- Form 7203 - Shareholder Stock and Debt Basis