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Shareholder

Enter change of ownership information for shareholders

Follow these steps to enter change of ownership information for shareholders.
  1. Select
    File
    , then
    Open Client
     to open the S Corporation client.
  2. Select Shareholder Information to open the
    Shareholder Information
     window.
  3. In the
    Shareholder
     tab, select
    Change of Ownership
    .
  4. In the 1st Date column, enter the date of ownership change and use ENTER. The date needs to fall within the S Corporation's tax year. UltraTax CS automatically adds a new Date column that displays the number of shares owned by each shareholder as of the last change of ownership date.
  5. In the Date column you added, enter the number of shares owned as of the date at the beginning of the Date column.
  6. Enter more date changes, up to 23, by repeating steps 4 and 5. When you enter more date changes, UltraTax CS automatically updates the number of shares in each Date column based on the number of shares in the previous Date column.
    note
    • If you previously overrode the shareholder ownership percentage, the change of ownership won't calculate unless you delete the overrides. To delete the overrides, select
      Edit
      ,
      Overrides
      , then
      Delete Shareholder Overrides
      . After deleting the override, enter the beginning of the year shares.
    • If the change of ownership happens on the 1st day of the tax year, change the beginning-of-year shares amount for each shareholder affected. To do so, select
      View
      ,
      Shareholder Information
      , then the
      Shareholder
       tab.
    • To delete or remove a date, double-click it and use DELETE.
    • To make a 1377 or a 1368 election, select the date of the change of ownership in the
      IRC 1377 or 1368 Dates Only
      dropdowns. You can't select 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.

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