Max W Posted March 21, 2020 Report Share Posted March 21, 2020 All the K-1's are available and the initial basis is known. After adding each years gains and losses there is about a $4000 increase in basis. However, distribution (Box 16d) is greater than the gains. What else other than return of capital would account for this? (Sec 179 is accounted for). Quote Link to comment Share on other sites More sharing options...
DANRVAN Posted March 24, 2020 Report Share Posted March 24, 2020 On 3/20/2020 at 5:51 PM, Max W said: However, distribution (Box 16d) is greater than the gains. I am not sure what you are asking Max. Are you saying the distribution is greater than the basis? Quote Link to comment Share on other sites More sharing options...
Max W Posted March 24, 2020 Author Report Share Posted March 24, 2020 1 hour ago, DANRVAN said: I am not sure what you are asking Max. Are you saying the distribution is greater than the basis? For a particular year the the non-dividend distribution is $2500 which decreases basis. The Box 1 income is $1000, which increases basis. So, would not the net change to basis be -$1500 ($1000-2500) ? The basis is $50K, so there is no need to to consider deductions to basis as exceeding the basis. 1 Quote Link to comment Share on other sites More sharing options...
Abby Normal Posted March 24, 2020 Report Share Posted March 24, 2020 All income, tax and nontaxable, increases stock basis. All deductions, deductible and nondeductible, decrease basis, as do distributions, of course. Just not below zero. 2 Quote Link to comment Share on other sites More sharing options...
Max W Posted March 24, 2020 Author Report Share Posted March 24, 2020 So, my example is correct. Quote Link to comment Share on other sites More sharing options...
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