Enter a change of ownership for an S corporation

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 the

Beginning of year shares

amount in

View

,

Shareholder Information

, then the

Shareholder

tab for each shareholder affected.

To delete or remove a date, double-click it and select

Delete

.

You'll need to enter beginning-of-year shares for the shareholders in the

Shareholder

tab before doing a change of ownership.

To make a 1377 or a 1368 election, enter the date of the change of ownership in the

IRC 1377 or 1368 Dates Only

dropdowns. 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.