An S shareholder's stock basis includes a ratable share of any S corporation liabilities.

Name: An S shareholder's stock basis includes a ratable share of any S corporation liabilities.
Brand: Quizplus
Rating: 4.9 (33 reviews)

Question

Quizplus · Accepted Answer

An S corporation shareholder's stock basis does not include a share of the corporation's liabilities. Only the basis in loans made directly by the shareholder to the S corporation is included in the shareholder's debt basis.

An S Shareholder's Stock Basis Includes a Ratable Share of Any