S corporation shareholders are not allowed to include any S corporation debt in their stock basis.

Name: S corporation shareholders are not allowed to include any S corporation debt in their stock basis.
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Question

Quizplus · Accepted Answer

According to the IRS, S corporation shareholders cannot include any S corporation debt in their stock basis. Only certain types of debts, such as loans directly from shareholders or loans used to purchase S corporation stock, can affect a shareholder's basis in their S corporation stock.

S Corporation Shareholders Are Not Allowed to Include Any S