sjrcpa
Level 15

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.


Ex-AllStar