sjrcpa
Level 15
09-11-2023
06:07 PM
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Not necessarily. The S Corp may not have the correct basis info.
What if Shareholder A dies and B inherited his shares. B gets a stepped up basis on his first day of ownership. How would the S Corp know that value?
Basis computations are done at the shareholder level. Sometimes the partnership or S Corp will do them, but they're based on only the info known to the entity.
The more I know the more I don’t know.