Darlene, a 30% shareholder in a calendar year S corporation, sells her stock on June 6, 2017. If the corporation has an operating loss for 2017, none of this loss can be claimed by Darlene because she was not a shareholder as of December 31, 2017.

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Quizplus · Accepted Answer

Darlene can claim her share of the operating loss for the portion of the year she was a shareholder, up until June 6, 2017. Shareholders in an S corporation can claim losses based on their ownership percentage and the time they held the stock during the year.

Darlene, a 30% Shareholder in a Calendar Year S Corporation