Federal Tax

  • 1.  Sub S - income allocation - additional Shareholder

    Platinum Most Valuable Member
    Posted 01-12-2014 01:22 PM

    Gentlemen

    I need some clarification on the division of S corp income when a new shareholder joins an existing a S corp.

    I was under the impression that I could close the books at that date, and allocate previous income or loss to the previously existing  shareholders, and then from that point on per share per day.

    However, as I read  am uncertain about this.  Is the election for closing the books only available for use when a shareholder EXITS and disposes of their entire interest.?

    any comments or help appreciated  :)

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    Abby Alhante
    KURCIAS & ALHANTE, CPAs LLC
    Woodbury NY
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  • 2.  RE:Sub S - income allocation - additional Shareholder

    Platinum Most Valuable Member
    Posted 01-13-2014 09:38 PM
    Abby: Take a look at IRC section 1733(a)(2) which allows the books to be closed when a shareholder disposes of his or her COMPLETE interest. You should also look at Regs. Sec. 1.1368-l (g). ------------------------------------------- Robert Brown ROBERT N. BROWN, CPA Jericho NY -------------------------------------------
    Original Message


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