A per-day,per-share allocation of flow-through S corporation items must be used,unless the shareholder disposes of the entire interest in the entity.

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The per-day, per-share allocation of flow-through S corporation items must be used unless the shareholder disposes of the entire interest in the entity. This is a requirement for S corporations to ensure that shareholders are taxed on their share of income, deductions, and credits based on the number of days they own shares during the tax year. If a shareholder disposes of their entire interest, they would no longer be eligible for this allocation method as they would not own any shares during the tax year.

A Per-Day,per-Share Allocation of Flow-Through S Corporation Items Must Be