Enter a change of ownership for an S corporation
Follow these steps to enter a change of ownership for an S corporation.
- SelectView, thenShareholder Information.
- SelectChange of Ownership.
- Enter the date of change and the resulting number of shares on this date for each shareholder.note
- UltraTax CS will calculate up to 24 changes of ownership.
- If the change of ownership happens on the 1st day of the tax year, change theBeginning of year sharesamount inView,Shareholder Information, then theShareholdertab for each shareholder affected.
- To delete or remove a date, double-click it and selectDelete.
- You'll need to enter beginning-of-year shares for the shareholders in theShareholdertab before doing a change of ownership.
- To make a 1377 or a 1368 election, enter the date of the change of ownership in theIRC 1377 or 1368 Dates Onlydropdowns. You can't enter the 1st day of the year.
- A 1377 election is made if 1 of the shareholders terminated their interest during the year. A 1368 election is made if a shareholder changed their ownership percentage in the S corporation by 20% or more during the year.
