Schedule E (Form 1120-S), Shareholder’s Stock and Debt Basis Limitations Completed Form Examples and Samples
Find clear, detailed examples and samples of a completed Schedule E (Form 1120-S), Shareholder’s Stock and Debt Basis Limitations. Learn how to correctly fill out the form, calculate stock and debt basis, and determine your allowable loss deduction with our practical, step-by-step guides for S-Corp shareholders.
Schedule E (Form 1120-S) Example – Shareholder with Sufficient Basis
How this form was filled:
This example shows how a shareholder, Jane Smith, calculates her stock and debt basis for her S-Corporation, Innovate Tech Solutions Inc. Her beginning stock basis of $50,000, plus increases, is sufficient to absorb a $30,000 pass-through loss, resulting in a fully deductible loss for the year.
Information used to fill out the document:
- Shareholder Name: Jane A. Smith
- Shareholder Identifying Number: 987-65-4321
- S Corporation Name: Innovate Tech Solutions Inc.
- S Corporation Employer Identification Number (EIN): 98-7654321
- Tax Year: 2025
- Beginning Stock Basis: $50,000
- Capital Contributions: $10,000
- Share of Income: $25,000
- Distributions Received: $5,000
- Share of Loss: $30,000
- Beginning Debt Basis: $20,000
- Loan Repayments Received: $2,000
What this filled form sample shows:
- Complete calculation of Part I: Shareholder's Stock Basis, showing increases and decreases.
- Demonstration of how to determine the allowable loss when stock basis is sufficient.
- Proper completion of Part II: Shareholder's Debt Basis, including adjustments for loan repayments.
- Final calculation in Part III: Shareholder's Allowable Loss and Deduction, summarizing the total deductible amount.
Form specifications and details:
| Form: | Schedule E (Form 1120-S) |
| Title: | Shareholder's Share of Income, Deductions, Credits, etc. |
| Use Case: | S-Corp shareholder with sufficient basis to deduct pass-through losses. |
| Tax Year: | 2025 |
| Created: | February 11, 2026 07:37 PM |