Optimize Tax Benefits Allocating Passthrough Items to S-Corp Shareholders

In a stock sale, the buyer purchases the S corp stock, taking on all the assets and liabilities of the company. With this process, the ownership ... ... shareholder's pro rata shares of items ... allocated to some partners or shareholders cannot be redistributed to other partners or shareholders. Instead, tax income and loss are passed through to the shareholders, who recognize the tax items on their individual returns. This avoids ... All non-resident shareholders of Mississippi S corporations are required to ... allocating these items, See Miss. Code Ann. §27-7-23. Net Operating ... The adjusted basis of the shareholder's interest in the corporation; the amount for which the taxpayer is at risk; or the passive activity ... ... items of income or deduction of an estate or trust. (b) Shares of fiduciary ... S corporation stock that is treated as a separate trust pursuant to ... Each shareholder's deduction for his or her share of the ordinary loss and the separately stated loss and deduction items is limited to the sum of the adjusted ... Here's a look at some of the more important elements of the new tax law that have an impact on partnerships, S corporations, and pass-through income. However, S corporation shareholders may be able to deduct 20% of their business income with the pass-through deduction established under the Tax ... Under the regulations, shareholders should allocate their pass-through items pro rata, determined on a per share per day basis. In this ...