Question: In computing stock basis, the shareholder starts with their initial capital contribution to the S corporation or the initial cost of the stock they purchased.
In computing stock basis, the shareholder starts with their initial capital contribution to the S corporation or the
initial cost of the stock they purchased. That amount is then increased andor decreased based on the passthrough amounts from the S corporation. A S corporation stock basis is generally increased by which of the
following?
A Distribution
B Deduction
C Loss
D Ordinary income
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