Which of the following is not an adjustment to an S corporation shareholder's stock basis?
A)Increase for any contributions to the S corporation during the year.
B)Increase for shareholder's share of ordinary business income.
C)Decrease for shareholder's share of nondeductible items.
D)Increase for distributions during the year.
E)None of the choices are correct.

Question

Quizplus · Accepted Answer

Distributions during the year decrease a shareholder's stock basis, not increase it. All other options listed would result in an increase or decrease in a shareholder's stock basis.

Which of the Following Is Not an Adjustment to an S