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 of income and loss items to determine which suspended losses are carried over to the next year.
Per the IRS Education Provider Standards this course must be COMPLETED by 12/31/2029 to receive credits. NOTE: Go to My Professional Profile in your CCH CPELink account settings to ensure your name, and PTIN number; matches your PTIN cardPublication Date: June 2026
Topics Covered
- Reporting equity on Form 7203
- Reporting shareholder loans, including "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 the steps in the process of basis reduction
Level
Basic
Instructional Method
Self-Study
NASBA Field of Study
Taxes (2 hours)
Program Prerequisites
None
Advance Preparation
None
