Optimizing S-Corp Taxation The Art of Passthrough Income Allocation

Profits, deduction, losses and other tax items are required to be allocated based on share ownership. The stockholders must include the profits as income in ... 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. The default is that pass-through items are allocated on a per-share per-day rule. All affected shareholders who own stock during the year ... The adjusted basis of the shareholder's interest in the corporation; the amount for which the taxpayer is at risk; or the passive activity ... • Compensation that the S corporation paid to any shareholder if the ... allocated as items of nonbusiness income and deductions using the Part IV ... Person means an individual, corporation, company ... (a) The Contractor shall test _____ unit(s) of Lot/Item _____ as specified in this contract. The portion of the income or loss allocated outside. New Jersey is considered S corporation income. A resident shareholder must report this as net pro rata ... A Pennsylvania resident shareholder in another state's Subchapter S corporation ... Dividend income reported as working capital in arriving at or allocated to net ... The allocation of shareholder items among shareholders should be consistent with the allocations made on the federal Schedules K-1. Alternative allocations ... Exhibit 1, on the following page, illustrates how different purchase price allocations for an asset sale of an S corporation could result in an ...