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At the beginning of 2021, Warren's basis in his S corporation stock is $0, he has a $0 debt basis associated with a $10,000 loan
At the beginning of 2021, Warren's basis in his S corporation stock is $0, he has a $0 debt basis associated with a $10,000 loan he made to the S corporation and a $5,000 suspended loss from the S corporation. In 2021, Warren contributed $8,000 to the S corporation, and the S corporation had ordinary income of $4,000. Warren owns 40% of the S corporation. What is Warren's stock and debt basis at the end of 2021
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