1366(d)(1) provides that deductible passthrough losses to a shareholder cannot exceed the shareholder's adjusted
basis of stock in the S corporation plus the shareholder's adjusted basis of any indebtedness of the S corporation to the shareholder.
Unlike large-cap funds, which get momentum from sector selection, mid-cap funds thrive on the
basis of stock selection.
While the general rule is that stock basis is determined as of the end of the S corporation's tax year, the
basis of stock disposed of during the year is determined immediately before the disposition occurs (Regs.
" The fortune is calculated on the
basis of stock prices and exchange rates information available as of October 12," it added.
The purchases will be made in the open market or in privately negotiated transactions, with the timing and exact size to be determined on the
basis of stock availability, price and the firm's financial results.
The winners were decided on the
basis of stock price of their virtual company at the end of five rounds.
In addition, there is a per issuer limit on gains eligible for the exclusion equal to the greater of $10,000,000 or 10 times the adjusted tax
basis of stock issued by the small business and disposed of by the investor during a particular year.
To calculate the
basis of stock acquired as a gift, you must know the fair market value (FMV) at the time of the gift, the donor's basis in the stock, and the amount of any gift tax paid.
The Internal Revenue Service has shown increasing interest in taxpayer compliance with Revenue Procedure 81-70, which provides guidance on determining the
basis of stock acquired in stock purchase transactions (mainly stock swaps).
The records were invaluable in computing the cost
basis of stock sold, determining her separate property and withstanding IRS audits.
Eddie Metrejean, The University of Mississippi Table 1 Scenario 1: Gain Is Less Than Exclusion Amount And Appreciated Property Rule Does Not Apply Amount Realized $ 8,000,000
Basis of Stock: Adj.
The IRC contains many rules that may affect the
basis of stock or debt in the hands of a shareholder.
