Where to Enter Shareholder Basis in Lacerte
Shareholder stock and debt basis is computed on screen 9, Shareholder Basis, in the 1120S module. Form 7203 itself is prepared on the individual return, not the 1120S: on the 1040 side the basis limitation section is screen 20.2, where the stock basis at the beginning of the year is a required entry, and screen 3 has a Form 7203 field set to 2 to force the form to print.
- Detail
- Screen 9, Shareholder Basis
| Trial balance account | Lacerte screen and field | Lands on |
|---|---|---|
| Stock basis, beginning | Screen 9 (1120S), or screen 20.2 line 1 on the 1040 | Form 7203 line 1 |
| Debt basis, beginning | Screen 9, loan balance at beginning of year | Form 7203 part II |
| Capital contributions | Screen 9. Not calculated automatically | Form 7203 stock basis increases |
| Shareholder loan repayments | Screen 8, Shareholder Loan Repayments | Reduces ending debt basis, Form 7203 line 3 |
| Distributions | Screen 8, split by screen 6 percentages | Reduces stock basis |
| Force the form | Screen 3, Miscellaneous, Form 7203 field set to 2 | Form 7203 prints |
Skip manual grouping codes. Get a Lacerte ready import file in minutes.
Try it freeWhere to Enter Shareholder Basis in Lacerte on a trial balance
| Acct # | Account | Debit | Credit |
|---|---|---|---|
| 1000 | Cash | 42,800.00 | |
| 1200 | Accounts receivable | 68,500.00 | |
| 1300 | Inventory | 55,000.00 | |
| 1500 | Equipment | 145,000.00 | |
| 1510 | Accumulated depreciation | 47,500.00 | |
| 2000 | Accounts payable | 28,400.00 | |
| 2100 | Accrued expenses | 9,200.00 | |
| 2400 | Notes payable | 92,000.00 | |
| 2450 | Due to shareholder (the account this page is about) | 15,000.00 | |
| 3000 | Common stock | 10,000.00 | |
| 3900 | Retained earnings | 86,300.00 | |
| 3950 | Shareholder distributions | 52,000.00 | |
| 4000 | Gross receipts | 612,000.00 | |
| 5000 | Cost of goods sold | 318,000.00 | |
| 6000 | Salaries and wages | 88,000.00 | |
| 6050 | Officer compensation | 72,000.00 | |
| 6300 | Depreciation expense | 21,500.00 | |
| 6900 | Other operating expenses | 37,600.00 | |
| Total | 900,400.00 | 900,400.00 |
Example journal entries
| Account | Debit | Credit |
|---|---|---|
| Cash | 15,000.00 | |
| Due to shareholder | 15,000.00 |
| Account | Debit | Credit |
|---|---|---|
| Due to shareholder | 5,000.00 | |
| Cash | 5,000.00 |
Two places, two purposes
The 1120S module computes basis on screen 9 so the preparer of the entity return can see it. Form 7203, the form the shareholder actually files, is prepared on the individual return.
That split matters when different people prepare the two returns. The entity level computation is a view of what basis should be; the individual level computation is the one that limits losses and determines whether a distribution is taxable.
Intuit's own articles are inconsistent about whether the 1120S module still generates basis schedules in recent versions, so check what your copy produces rather than assuming.
What Lacerte calculates and what it does not
From the K-1 entries, the program picks up the ordinary items: income, losses, deductions, distributions.
What it does not pick up, and what therefore has to be entered:
- Capital contributions during the year
- Excess depletion
- Other stock basis adjustments
- The beginning stock basis itself, which is a required entry before Form 7203 will generate
The balance sheet feeds this
Three balance sheet accounts drive basis, and all three are commonly wrong on a client trial balance:
Loans from the shareholder. A loan creates debt basis, which can absorb losses after stock basis is exhausted. A loan guaranteed by the shareholder but made by a bank does not, because a guarantee is not an economic outlay.
Capital contributions. Equity, increasing stock basis, and frequently miscoded as income or as a loan.
Distributions. Reduce stock basis, and tax free only to the extent of it.
Loan repayments entered on screen 8 reduce the debt basis at the beginning of the year when Lacerte computes ending debt basis, which is why repayments need entering rather than netting against the loan account.
Why it is worth getting right at the entity level
The shareholder's return is where the limits bite, but the entity return is where the facts live. Years of losses with no basis tracking produce a client who believes their distributions were tax free and a preparer who discovers otherwise several years later.
The 1120S computation is an estimate of the individual outcome, and an estimate that flags the problem in February is worth more than a correct computation in October.
Tax return treatment
| Form | Line |
|---|---|
| Form 1120S | Shareholder basis schedule from screen 9, with loans on Schedule L line 19 |
| Form 7203 | Prepared on the shareholder 1040, from screen 20.2 |
Common questions
What screen is shareholder basis in Lacerte?
Screen 9, Shareholder Basis, in the 1120S module, which computes stock and debt basis. Form 7203 itself is prepared on the shareholder individual return, where the basis limitation section is screen 20.2.
Why is Form 7203 not generating?
The stock basis at the beginning of the year is a required entry before the form will generate. There is also a Form 7203 field on screen 3, Miscellaneous, which is set to 2 to force the form to print.
Does Lacerte calculate every basis adjustment?
No. It picks up the ordinary K-1 items automatically but not capital contributions, excess depletion or other stock basis adjustments. Those are entered, and so is the beginning stock basis.
Do shareholder loan repayments affect basis?
Yes. Repayments entered on screen 8 reduce the beginning debt basis when Lacerte computes the ending debt basis, so they need to be entered rather than netted against the loan account on the balance sheet.
Related answers
Go deeper
This page is the short answer. These articles work through the same ground in detail.
Last reviewed October 18, 2026.