Which of the following does not affect the basis of S corporation stock?
A)Tax-exempt income
B)Nondeductible expenses
C)Capital gains
D)All affect stock basis

Question

Quizplus · Accepted Answer

All listed items (tax-exempt income, nondeductible expenses, and capital gains) affect the basis of S corporation stock. Tax-exempt income increases the basis, nondeductible expenses decrease the basis, and capital gains also affect the basis depending on the transaction specifics.

Which of the Following Does Not Affect the Basis of S