Basis of Stock

Basis of Stock

If purchased, the amount paid for the stock. If the stock is received as a gift, basis is generally the basis of the previous owner or the fair market value when received. The basis of inherited stock is usually its fair market value on the date of the decedent's death.
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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.