Sharing 1120S and 1065 Data to the 1040 in UltraTax CS
Basis and K-1 items share from the business return to the 1040 client automatically. Beginning of year basis and prior suspended losses share only if the relevant data share fields are marked, and suppressing the basis worksheet calculation also stops basis from sharing at all. Those settings are on the 1120 tab in the General folder.
- Folders
- General
- 1120 tab
- Data sharing fields
| Trial balance account | UltraTax CS screen and field | Lands on |
|---|---|---|
| Current year K-1 items | Shared automatically | The shareholder or partner 1040 |
| Beginning of year basis | Shares only if the data share field is marked | Form 7203 or partner basis |
| Prior suspended losses | Shares only if the data share field is marked | Loss limitation on the 1040 |
| Basis worksheet suppressed | General folder, 1120 tab | Stops the worksheet and the sharing |
| Where to check first | General folder, 1120 tab suppression fields | Before re-entering anything |
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Try it freeSharing 1120S and 1065 Data to the 1040 in UltraTax CS 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 | 15,000.00 | |
| 3000 | Common stock | 10,000.00 | |
| 3900 | Retained earnings (the account this page is about) | 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 |
What shares by default and what does not
Current year K-1 items flow from the business return to the 1040 client without being asked. That is the part everyone relies on, and it works.
Two things do not share unless you mark the relevant fields: beginning of year basis, and prior suspended losses. Both are history rather than current year activity, and both are exactly what a new client's return needs.
So a firm that prepares both returns may still find the shareholder's Form 7203 starting from nothing, not because sharing failed but because the historical fields were never marked.
The suppression that stops everything
Suppressing the basis worksheet calculation also stops basis data from sharing to 1040 clients. One setting, two consequences, and the second one is invisible from the business return.
The settings live on the 1120 tab in the General folder. When basis is not appearing on the individual return, that tab is the first place to look, before anyone starts re-entering figures by hand.
Why this matters more than it sounds
The entity return reports; the individual return applies the limits. A loss on a K-1 is not limited at the entity level, and a distribution's taxability depends on basis the entity does not finally compute.
When the two returns are prepared by the same firm, data sharing is what keeps those connected. When it quietly does not share the history, the individual preparer either reconstructs basis from prior returns or assumes it is fine, and the second one is common.
A workflow note for firms running both
Three habits remove most of the trouble:
- Mark the historical data share fields when a client is set up, not in the year someone needs them
- Produce the entity basis worksheet even when it is not required, so the figures exist in the file
- Check the diagnostic that compares shareholder loan principal to Schedule L line 19(d), since that is the one that catches a balance sheet and a basis computation disagreeing
None of that is glamorous, and all of it is cheaper than reconstructing basis three years later from returns somebody else prepared.
Tax return treatment
| Form | Line |
|---|---|
| Form 1120S | K-1 items and basis to the shareholder 1040 |
| Form 1065 | K-1 items and basis to the partner 1040 |
| Form 7203 | Built on the shared basis data at the 1040 level |
Common questions
Does basis share automatically from the 1120S to the 1040 in UltraTax?
Current year items do. Beginning of year basis and prior suspended losses share only if the relevant data share fields are marked, which is why a shareholder Form 7203 can start from nothing even when the same firm prepares both returns.
Why is basis not sharing to my 1040 client?
Most likely the basis worksheet calculation is suppressed, which also stops the data sharing. The suppression fields are on the 1120 tab in the General folder, and that is the place to check before re-entering anything manually.
Where are the data sharing settings?
On the 1120 tab in the General folder, alongside the suppression fields for the basis calculation and the beginning basis data share field.
What should a firm preparing both returns do differently?
Mark the historical data share fields when the client is set up rather than when someone needs them, produce the entity basis worksheet even when it is not required, and act on the diagnostic that compares shareholder loan principal to Schedule L line 19(d).
Related answers
Go deeper
This page is the short answer. These articles work through the same ground in detail.
Last reviewed October 18, 2026.