A shareholder's basis in the stock of an S corporation is increased by corporate profits and decreased by losses.

Name: A shareholder's basis in the stock of an S corporation is increased by corporate profits and decreased by losses.
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Question

Quizplus · Accepted Answer

A shareholder's basis in an S corporation stock is indeed increased by their share of the corporation's profits and decreased by their share of the corporation's losses, along with distributions they receive.

A Shareholder's Basis in the Stock of an S Corporation