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 these

Question

Quizplus · Accepted Answer

Distributions during the year would decrease the shareholder's stock basis, not increase it. Therefore, option D is the adjustment that is not an adjustment to an S corporation shareholder's stock basis. The other options are all adjustments that will affect the shareholder's stock basis in the S corporation.

Which of the Following Is Not an Adjustment to an S