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
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.
The IRC contains many rules that may affect the basis of stock
or debt in the hands of a shareholder.