Question

Please explain "Stock Block" on Form 7203.

Forum|Forum|4 years ago
March 21, 2022
2 replies
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I have read all of the instructions for Form 7203, but cannot find anything that explains what I am supposed to fill in the "stock block" section at the beginning of Form 7203.

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ErnieS0

If you acquired your S-Corporation shares at different times or at different prices, you will have more than on stock block. Identify each separate block of stock.

Stock block. When a shareholder has a different basis in different blocks of stock, pass-through items are generally allocated pro rata to all shares, regardless of their different bases. If there is a partial stock sale or partial redemption, you may file more than one form and provide a description of what period the form covers. See Regulations section 1.1367-1(b)(2) and (c)(3) for details.

Instructions for Form 7203

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R

Rlc54326666

So what do you put in there if you only 100 shares, since day 1?

AliciaP1

You will enter "1" for the stock block if you have only purchased 1 block of stocks. A stock block refers to the group of stocks you purchase each time. For instance, if you purchase 100 shares on day 1 then purchase 100 more on day 200, you have 2 stock blocks.

@Rlc54326666

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