What is the total ending stock basis for a shareholder in a solely owned S corporation based on provided facts?

In the context of an S corporation, the total ending stock basis for a shareholder is generally calculated by taking the initial stock basis and adjusting it for various factors such as additional investments, share of income or loss from the S corporation, and distributions received.

To arrive at the total ending stock basis, begin with the initial investment made by the shareholder in the S corporation. This is then increased by the shareholder's proportionate share of the corporation’s income, which adds value to the shareholder's basis. Conversely, any distributions taken by the shareholder will decrease that basis, as they represent a return of capital.

In this scenario, if the total ending stock basis is determined to be $99,100 for the shareholder, it likely reflects specific adjustments made according to the financial performance of the corporation during the year, including additional investments and income allocations. These factors cumulatively would enhance the basis compared to the initial investment, which is typical for a solely owned S corporation, as the owner has a direct link to the business's operations.

This means that the figure presented accurately represents the culmination of these adjustments, hence confirming that $99,100 is indeed the total ending stock basis. Understanding this process illustrates the importance of tracking income or losses and distributions whenever assessing stock basis