Once invested IN a corporation, shareholders want their money out $-$ they want a return on investment! Hank owns $100\%$ of LET THE GOOD TIMES ROLL INC, which he founded on $01/01/2023!$  A party and experience company $-$ things rocked out! He invested as a sole proprietor years ago into his "little" entertainment center $-$ his basis was $$200,000$ and the fair market value was still only $$200,000$ when he exchanged it for $100\%$ of the stock of LTGTR INC on $1/1/2023.$  Yup, one of those IRC Sec $351$ deals! Anyway, that pandemic sucked! But $2023$ was good, and on $12\mathrm{.}31\mathrm{.}2023$ the company made a distribution of $$900,000$ with respect to Hank's stock. He liked it$!$  Afterall, the company had $$50,000$ of Current E&P EACH MONTH in $2023!$  AND, a recent valuation of the company was conducted, and the appraiser said it was worth $$500,000$ on $4/15/2024!$ 

what's my basis in my stock after I got this $$900,000$ distribution?"

 

 

Answer rating: 100% (QA)

Answer To calculate your basis in your stock after receiving the 9... View the full answer