Yes. An S corporation's items of income, loss, deduction, and credit are passed through to, and taken into account by, the shareholders in computing their own tax liability for the shareholder's tax year in which the S corporation's tax year ends. Where the individual shareholder dies during the year, these items are taken into account on the shareholder's final return.
If an S corporation shareholder dies before the end of the S corporation's tax year, is the shareholder's pro rata share of the corporation's income, loss, credits, and deductions reported on the shareholder's final income tax return?
Modified on: Sun, 5 Feb, 2017 at 8:45 PM
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