My husband and I are 50% shareholders of an S corporation. He passed away in August 2015, and I am late filing the S corporation return. I am the only beneficiary of our estate, which went into probate in July 2016. I need to compute the stock basis of his shares. We incorporated in 1995, so there are many years of gains and losses. How do I change his stock from 500 shares to zero for 2015 and file the return? Additionally, we were a C corporation the first year before choosing S status, and we have earnings that were taxed of $88,000. How does that play into the tracking of the basis of the stock?

July 25th, 2024

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