Video: Shareholder's Basis in C Corporation Stock

In this lesson, Nick Palazzolo, CPA, walks through the practicalities of calculating a shareholder's basis in C-Corporation stock. He takes the mystery out of tracking an investor's initial investment and subsequent contributions, including capital infusions and distributions like retained earnings or dividends, and how these activities interact with the basis. Using a clear example of a shareholder's transactions, Nick illustrates how basis can increase or remain constant despite corporate earnings and shareholder dividends. He also gives a nod to the intricacies involved when approaching different types of entities such as S-Corps or partnerships, ensuring a well-rounded understanding of how these transactions could play out across different business structures.