The Profits of a Business Owned by Taylor 60%) and Maggie

True/False

The profits of a business owned by Taylor 60%) and Maggie 40%) for the current tax year are $100,000. If the business is a C corporation or an S corporation, there is no effect on Taylor's basis in her stock. If the business is a partnership or an LLC, Taylor's basis in her partnership interest or basis in her stock is increased by $60,000.