TAXMAN Posted March 6, 2014 Report Share Posted March 6, 2014 S corp stock value on books at 100K. This was what the 2 stockholders put in 20 years ago. All cash, no loans etc. 2012 stockholder 1 bought out stockholder 2. Paid him cash from his own pocket. The way I see this is #1 now owns all the stock with a different basis on his end but not on book/tax balance sheet. It stays at 100k. Am I right in this or am I WAY OFF BASE? #1 has pretty good basis for his stock through all the years. Just want to be sure I do not change the balance sheet? Thanks all Quote Link to comment Share on other sites More sharing options...
jklcpa Posted March 7, 2014 Report Share Posted March 7, 2014 You are correct. No adjustment to the books, and his basis in those new shares starts out with what he paid to buy out #2. You might want to track the basis of the 2 lots of stock separately to save everyone a headache sometime in future. Quote Link to comment Share on other sites More sharing options...
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