ThomasM125
Expert Alumni

Business & farm

Your basis is basically what you spent to acquire the investment, plus income you reported from it over the years, less losses you reported, plus any additional money you put into it, less any distributions you took.

 

Increases in basis would be income you reported during the year plus any money you contributed to the company during the year.

 

Decreases in basis would be distributions you took from the company, plus losses reported.

 

You can see this article to learn more about basis:

 

https://taxmap.irs.gov/taxmap2016/pubs/p541-006.htm

 

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