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Stock in Corporation  Form

Stock in Corporation Form

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Instructions and help about shareholders sell stock

in this video I want to show you how to calculate basis for S corporation stock we'll start with the shareholder's initial basis before making a series of upward and downward adjustments which I shall show you momentarily to arrive at the shareholders new basis in the S corporation stock now you're going to notice a couple of things when I show you those adjustments first the main things that increase the shareholders basis are going to be the shareholders Pro rat a share of any income items as well as any Capital contributions made by the shareholder to the S corporation okay so those things are going to increase the shareholders basis now the things that are going to decrease the shareholders basis are going to be the shareholders Pro rat a share of any deductions or losses and any distributions that are made by the S corporation to that shareholder okay so we'll discuss those specifics in a minute but first I want to notice a key difference between s

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