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This article applies to:

  • Product: ONESOURCE Income Tax Express RS
  • Return type: 1120 Corporation
  • Subject: Shareholders

Enter a share transfer in an 1120S return

Enter a share transfer in an 1120S return, including transfers on the 1st day of the tax year and transfers during subsequent periods.
Use the following procedures to enter share transfers depending on when each transfer occurs during the tax year.
  1. Enter transfers that occur on the 1st day of the tax year.
    Go to
    Organizer
    Shareholder Information
    Shareholder Data
    Share Transfers
    . Enter the incremental shares transferred on the 1st day of the tax year next to the shareholders. Enter positive numbers to indicate share increases and negative numbers to indicate share decreases.
    The application adds the amount you enter for the 1st day of the year to the
    Beginning Shares
     amount you enter for each shareholder on the
    Shareholder Information
     screen. Therefore, enter only the shareholder's prior-year ending shares—not the transferred amount—as the beginning shares on the
    Shareholder Information
     screen.
    If you make entries on the
    Transfers on First Day of Year
     screen, the application prints a statement detailing the first-day transfers. If you don't want this printed detail, make no entries on this screen. Instead, enter the shareholder's prior-year ending shares, plus or minus any first-day share transfers, directly as the beginning shares on the
    Shareholder Information
     screen.
  2. Define Period 1 on the
    Period 01-Period 03
     tab of the
    Share Transfers
     screen.
    Don't enter any transfers in Period 1. The application assumes the shareholder holds the beginning number of shares entered on the
    Shareholder Information
     screen, plus or minus any first-day transfers, throughout Period 1.
    Period 1 must begin on January 1 for calendar-year returns, or on the date entered for
    Beginning Of Fiscal Year
     on the
    Organizer
    General Information
    Company Information
     screen for fiscal-year returns. Period 1 must end on the day the 1st share transfer takes place.
    For example, if a calendar-year S corporation transfers 100 shares on March 18, 2026, Period 1 runs from January 1, 2026 to March 18, 2026.
  3. Define Periods 2 through 24 for any subsequent transfers.
    Begin Period 2 on the day following the end of Period 1 (the day after the 1st share transfer takes place). End Period 2 on the day the 2nd share transfer takes place, or, if no further transfers occur, on the last day of the tax year. Apply the same pattern to each subsequent period.
The application calculates each shareholder's share ownership for every period based on the transfers you enter.
Review the following guidelines to avoid common data-entry errors:
  • Enter only the incremental share amounts for each transfer.
  • Enter positive numbers to indicate increases and negative numbers to indicate decreases.
  • Make period dates inclusive. For a 52/53-week return, override the number of days in each period.
  • Ensure at least 1 shareholder owns shares for every day of the tax year.
  • Don't enter an
    Ownership percentage for tax year (Override)
     on the
    Shareholder Information
     screen.
  • For consolidated S corporations, enter transfer information in the Parent locator.
To review the Share Transfer schedules, go to
Tax Forms
Federal
Summary-Shareholders/Shares/Percentage
Summary-Shareholders/Shares/Percentage
. Under the
Share Transfers
 section, select the
View Number of Shares Owned per Period
 hyperlink, the
View Ownership Percentage per Period
 hyperlink, or both. If you enter share transfers correctly in the Organizer, the application automatically prints these schedules.

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