How does an investment credit affect my basis?

May 28, 2008 0 Replies

I invested in a small NYS company that qualified for a 20% QETC credit. (I got a 20% credit on my NYS income tax.)



Does the credit affect my basis on my federal return? state return?



To be more specific, I invested $100k and got a $20k credit. Is my basis $100k or $80k? I expect I will actually end up losing money on the investment, if that matters.


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