hgtc
Level 5
01-18-2024
03:01 PM
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S-corp bought out departing shareholder and retired treasury stocks. This reduces total shareholders' equity. Will each remaining shareholder's stock basis also reduced?
Or, there is no change to remaining shareholders' stock basis. Hence, total remaining shareholders stock basis (costs) are higher than total shareholders' equity?
Thanks.
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IRonMaN
Level 15
01-18-2024
04:10 PM
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It just affects the departing shareholder. It shouldn't affect the basis of the remaining shareholders.
Slava Ukraini!
hgtc
Level 5
01-18-2024
04:24 PM
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Thanks.
IRonMaN
Level 15
01-18-2024
04:35 PM
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You betcha!
Slava Ukraini!