Category: Shareholder Basis

Picture of Page 1 of Form 1120S.

Does an S Corporation’s Credit Card Debt Increase Shareholders’ Basis?

Basis is an important concept for determining how a shareholder calculates the tax implications of many different situations and events related to their ownership in an S Corporation. There are two kinds of basis that a shareholder can have in an S Corporation: stock basis and debt basis. A common question related to shareholder basis is this: does a shareholder...