A shareholder's basis in Subchapter S stock is increased by his or her share of all of the following except:

Question

Quizplus · Accepted Answer

The shareholder's basis in S corporation stock is increased by capital contributions (A), interest income (C), and loans from the shareholder to the corporation (D), but not by the shareholder's proportionate share of corporate debt (B), as this does not directly affect the shareholder's equity in the corporation.

A Shareholder's Basis in Subchapter S Stock Is Increased by His