Form 7203, S Corporation Shareholder Stock and Debt Basis Limitations, is used by the S corporation shareholder to calculate and report their stock and debt basis. According to the Form 1040, Schedule E instructions, Form 7203 should be attached to an individual shareholder's tax return when a basis computation is required. This course discusses the loss limitations applicable to S corporation shareholders, how stock and debt basis are calculated, reporting current and carryover losses, and utilizing suspended losses.