Capital Gains and Losses
Capital Gains Tax Questions? Ask a Tax Advisor for Answers ASAP
If you contributed assets - yes - these assets must be considered for the basis calculation.However we should use your cost basis for these assets - if these are self-created intangibles - most likely your cost basis is not large and that will not make much difference.But we may not use the fair market value of such assets - only your actual cost paid when you purchased or created these assets that was capitalized and NOT deducted.Calculations for your basis is not reported to the IRS - but you will need to keep all supporting documents - if audited - you might be asked to provide.
Following article explains how stock basis is established and adjusted for S-corporations
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