The U.S. IRS has released an international practice unit on Adjustments to Debt Basis for S corporations. Debt basis must be tracked separately from stock basis and is used in determining the taxability of loan repayments. It is important that shareholders know the amount of their debt basis when: The S corporation allocates a loss or deduction item to the shareholder; The S corporation makes a repayment on a loan from the shareholder; or The shareholder disposes of stock. International practice units are developed by the Large Business and International Division of the IRS to provide staff with explanations of...