An S Shareholder's Stock Basis Does Not Include a Ratable

question 101

True/False

An S shareholder's stock basis does not include a ratable share of S corporation liabilities.

---

Definitions:

Systematic Way

A methodical approach to procedures or practices that are organized according to a plan or system.

Reality

The sum or aggregate of all that is real or existent within a system, as opposed to that which is only imaginary.

Material

Consisting of physical substance; relating to physical matter and objects as opposed to spiritual or intellectual qualities.

Spiritual

Relating to or affecting the human spirit or soul as opposed to material or physical things; often concerns a sense of connection to something greater than oneself.