Form 7203, S Corporation Shareholder Stock and Debt Basis Limitations, is a tax form used by shareholders of an S Corporation to track their stock and debt basis. This form is not filed with the IRS but is instead kept for the shareholder's records. It helps shareholders determine the amount of loss and deduction they can claim on their individual income tax return. It also helps them track the increase or decrease in their stock and debt basis as a result of the S Corporation's operations and other events.
