Hello everyone -
How do we calculate (for the first time) our stock basis as shareholders for our S-corp?
We switched to S-Corp tax status beginning 01/01/2023 after filing as a regular LLC for 7 years. Money transfered from the business was simply recorded as Owners Draw (Equity) and zeroed out every 01/01 against Retained Earnings.
Do I need to calculate Stock Basis as of 01/01/23 or 12/31/22? Do I need to calculate it for all years prior even when we were just an LLC?
Any help would be appreciated!
