Samantha owned 1,000 shares in Evita, Inc., an S corporation, that uses the calendar year. On October 11, Samantha sells all of her Evita stock. Her stock basis at the beginning of the tax year was $60,000. Evita's ordinary income for the year was $22,000 through the date of sale, and she receives a distribution of $35,000 on May 3rd. Her stock basis at the time of the sale is:

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Samantha's stock basis is adjusted by adding her share of the ordinary income ($22,000) and subtracting the distribution ($35,000) from the initial basis ($60,000), resulting in a basis of $47,000 at the time of sale.

Samantha Owned 1,000 Shares in Evita, Inc