Filing Form 7203
Author: Greg White
| CPE Credit: |
2 hours for CPAs
2 hours Federal Tax Related for EAs and OTRPs
2 hours Federal Tax Law for CTEC |
New Form 7203 presents a bundle of challenges. We’ll review sample prepared Forms 7203 you can use as templates. We’ll be covering the underlying issues including, what is “open account” indebtedness and how does it get reported on Form 7203. We’ll also cover issues like the proper ordering if income and loss items to determine which suspended losses are carried over to the next year.
Publication Date: June 2023
Designed For
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Topics Covered
- Reporting equity on Form 7203
- Reporting shareholder loans, include "open account" indebtedness
- Calculating and reporting the amount of loss limitations
- Sample Forms 7203 illustrating the tax principles behind shareholder loss limitations and distributions in excess of basis
Learning Objectives
- Recognize how to report income and loss items on Form 7203
- Identify the proper method for reporting shareholder loans
- Identify "open account" indebtedness and how to report it
- Identify the rule you should be aware of with respect to tracking debt separately
- Identify how many parts are included in Form 7203
- Identify the second step in the process with respect to the order of basis reduction
- Identify Debt Rule #3
Level
Basic
Instructional Method
Self-Study
NASBA Field of Study
Taxes (2 hours)
Program Prerequisites
None
Advance Preparation
None
