Which Form 1120 C Allocation 2023-2024

Hello and welcome to the session. We will be looking at the shareholders' stock basis, specifically in relation to C corporations. The rules for determining the initial basis are very similar to those of the C core basis. To understand the basis of the stock, we need to review how to determine the C core basis. Any purchases of additional stock will increase the basis. This means that if we buy more stocks in the company, the basis will increase. Capital contributions and non-separately computed items also increase the basis. Non-separately computed items and computed income were discussed in a previous session. If you're unsure about these items, they are referred to as non-separately stated and separately stated income items. Depletion and excess of the basis also increase the basis. On the other hand, distributions not reported as income by shareholders from triple-A will decrease the basis. These distributions are not taxable since they have already been taxed, but they will still reduce the basis. Non-deductible expenses and non-separately computed losses also reduce the basis. Separately stated losses and deductions also reduce the basis. Income items increase the basis, while losses decrease it. The order of basis rules is as follows: first, increase the basis by income items. Then, decrease the basis by distributions. Finally, decrease the basis by any losses. It's important to note that a shareholder's basis cannot be negative. Once the basis is reduced to zero, any additional reductions such as losses or deductions (but not distributions) will further decrease the basis. If a valid loan is made to the S corporation, the loan amount will be used to reduce the basis. Any excess losses or deductions are suspended until basis is generated. After the basis is reduced, subsequent net increases will adjust the basis based on all positive and negative...