A shareholder's basis for the S corporation stock is adjusted for ordinary income or loss and separately stated items that flow through to the shareholders as well as for additional capital contributions by shareholders and distributions to shareholders.

Question

Quizplus · Accepted Answer

This statement is true. Shareholder's basis for S corporation stock is adjusted for various factors such as income or loss, separately stated items, capital contributions, and distributions.

A Shareholder's Basis for the S Corporation Stock Is Adjusted