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in this video Im going to educate you on a concept called S corporation stock basis every single S corporation owner needs to understand this concept but rarely does their account and teach them about it Im going to show you an example though of how not knowing about this can cost you well over five thousand dollars of taxes now I Im sure Ive already lost some of you already but let me explain why this is important and why you should keep continuing to watch okay and Ill explain this in laymans terms if you take distributions from your S corporation in excess of your basis and I get it right now you dont know what basis might really mean the excess distributions will be taxed as capital gains that might be short-term capital gains which is ordinary income tax or long-term capital gains and its so easy to make this mistake meaning take distributions in excess of your basis so I want to avoid you making that mistake yourself so please you know keep watching alright so let me try
