"Seth" <sethb[at]panix.com> wrote in message
news:gh7cke$82b$3[at]reader1.panix.com...
- quote -

I see your point though; I don't know if a tax credit changes basis.

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In article <gh688m$ebs$1[at]news.motzarella.org> , jack <jack[at]yahoo.org> wrote:
- quote -

Did you pay state income tax on it as well? If not, you might have
different bases for state and federal taxes.

Seth

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I invested $100,000 in a company in 1998. I got a $20,000 tax credit from
NYS.

Is my basis $100,000 or $80,000? I had to pay federal income tax on the
credit, so if it also reduces my basis I will be taxed twice on it; so
presumably it is still $100,000, but I want to be sure.

The company is nearly worthless. If I were to sell my stock to the company
for a $10,000 note could I take my $90,000 loss now, and another $10,000
when the note becomes officially worthless; or something else.

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<< ------------------------------------------------------- > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2007) - All rights reserved. > << ------------------------------------------------------- >