Discussion:Stockholders Stock Basis
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Discussion Forum Index --> Advanced Tax Questions --> Stockholders Stock Basis
Discussion Forum Index --> Tax Questions --> Stockholders Stock Basis
| 5 July 2008 | |
| I'm preparing a final tax return for a corporation that ceased operations in 2007. I need to figure out the stockholders stock basis in order to prepare their individaul tax return. The corporation doesn't have any cash and all of the assets have been disposed off and fully depreciated. In addition the stockholders (husband and wife) will assume corporate liabilities of 12,000. Thy also have additional paid in capital of 298000.00. Does someone have an anwer for this?? | |
| July 5, 2008 | |
| http://www.taxalmanac.org/index.php?title=User:Meurer&action=edit
Fill that out, Meurer. | |
| 8 July 2008 | |
| I have never used this website before and I wonder if others have been able to read my question? Does anyone have an answer to the stock basis? Thanks!!! | |
| 8 July 2008 | |
| Welcome. I'm new too, and I find this forum is addictive. I am constantly challenged in my thinking.
I presume this is a C Corp. Normally, the basis is the capital stock plus add'l PIC. S/H loans can enter into the formula, as can other factors such as bankruptcy. The corp liability is added to basis when paid. Have they really incurred $300,000 of losses? If they qualify for Sec. 1244 treatment, they are not limited to $3,000 per year capital losses, but instead have an ordinary loss of the full amount. That's the advantage of capitalizing with PIC and not with S/H loans. | |
| 8 July 2008 | |
| I thought qualified section 1244 losses were subject to 50,000 (S), 100,000 (MFJ) ordinary loss limits and the rest gets capital treatment. | |
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