You may find your answers in this IRS document Instructions for Form 7203, S Corporation Shareholder Stock and Debt Basis Limitations.
In summary:
- Capital contributions consist of every dollar you invested in the company, even if you didn't issue stock.
- Income increases your basis; losses decrease your basis.
- Distributions consist of every dollar you withdrew from the company for personal purposes.
- Debt must be evidenced by a legal document to prove you loaned money to the company with the expectation of repayment, including fair market interest.
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