If an S Corporation buys back stock and the Treasury stock is reflected on the balance sheet, does the amount of the treasury stock affect stock basis?
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Some info....
See paragraph 4 of attached. (Not all inclusive of your scenario and further research required)
Always cite your source for support to defend your opinion -
Is not basis tracked at the stockholder's return?Comment
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Yes it is tracked at the shareholder. As an example if additional stock is contributed this increase equity of the S corporation and also the basis of the shareholder who contributed.
So my question was if stock is bought back then how does it affect the shareholder basis in that S Corporation.Comment
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