What method is used to allocate S corporation income or losses (unless an election to the contrary is made)?

Question

Quizplus · Accepted Answer

S corporation income or losses are allocated on a per-day basis throughout the tax year unless an election is made to use a different method. This ensures that each shareholder's share of income, deduction, loss, or credit is calculated based on their ownership percentage for each day of the corporation's tax year.

What Method Is Used to Allocate S Corporation Income or Losses