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Atlas Manufacturing Basis · Marcus Reyes

Basis cascade · Tax year 2026

0Opening basis (Jan 1)
$148,200
+Ordinary income (K-1, line 1)
$96,400
Distributions (planned)
$220,000
Ending basis (Dec 31) $26,250

Cascade reconciles

$0.00

Arithmetic checks per shareholder per year

7203 import

~1.4s

Prior-year PDF parsed to ledger entries

RC methodology

3

IRS-recognized approaches per analysis

Report deliverable

24 pp

Audit-ready PDF, IRC §162-aligned

What you work in

The three surfaces you live in.

Tracking

Marcus Reyes

Opening$148,200
+ K-1 income$96,400
− Distributions$220,000
Ending basis$26,250

Shareholder basis tracking

§1366/§1367 ordered per shareholder.

Modeling

Conservative

Salary 120K

$58K

Base

Salary 95K

$26K

Aggressive

Salary 75K

−$12K

Scenario compare

Three cascades, one view.

Forecast

P&L · monthly · 2026

J
F
M
A
Revenue
82
79
88
95
Officer comp
7.9
7.9
7.9
7.9
Net
25
24
28
31

P&L forecast

Monthly grid · cash bridge.

What's in the workspace

Six things you stop stitching together.

Shareholder basis tracking

§1366/§1367-ordered cascade per shareholder, year over year.

Scenario compare

Conservative, Base, and Aggressive side by side. Binding constraint identified.

P&L forecast

Monthly grid. Officer compensation flows in from the salary picks.

Form 7203 import

Upload the prior-year PDF; sub-totals validate; the cascade seeds.

Cap-table management

Totals enforced at 100%. Ownership changes route through the rebalancer.

Reasonable-comp report

IRC §162-aligned. Three IRS-recognized approaches. 24-page audit-ready PDF.

Onboarding a new client

Last year's Form 7203, imported.

Upload the prior-year PDF. Lines 1, 3a, 3k, 6, 8a, and 11 map directly into the cascade. Form 7203 sub-total identities are validated before any ledger entry is written. Line 15 seeds the next-year opening basis automatically.

IRS template + tax-software outputs Math-validated parser
Import Form 7203
Marcus Reyes · TY 2025

marcus-reyes-7203-2025.pdf

142 KB · Parsed in 1.4s

Sub-totals validated

Parsed → ledger entries

Line 1 · Opening basis $148,200
Line 3a · Ordinary income $92,180
Line 6 · Distributions $185,000
→ Seeds 2026 opening $148,200

Year-end planning

The year-end decision, modeled side by side.

Conservative, Base, and Aggressive. Cascade reconciles per column. The binding constraint surfaces automatically.

Conservative

$120K salary

Opening$148.2K
+ K-1$77.4K
− Dist.$160K
Ending$58K
Headroom $58K

Base

$95K salary

Opening$148.2K
+ K-1$96.4K
− Dist.$220K
Ending$26K
Binding constraint

Aggressive

$75K salary

Opening$148.2K
+ K-1$112.4K
− Dist.$280K
Ending−$22K
Excess distribution

Snapshot the recommended scenario at year-end. The cascade is preserved in the file; the next year opens with the right basis automatically.

The deliverable

A 24-page report you attach to the file.

Methodology, BLS OEWS data sources, role allocation, defensibility rationale, IRC §162 references. Audit documentation in one PDF.

Sample SafeRatio reasonable compensation report
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One workspace for every S-Corp client.

Salary, basis, distributions, forecast, and the report — in one place.

Exhibitor at NAEA Tax Summit 2026