- 8 -
Section 301.6245-1T(c), Temporary Proced. & Admin. Regs., 52
Fed. Reg. 3004 (Jan. 30, 1987), provides in pertinent part:
(c) Illustrations–-(1) In general. This paragraph
(c) illustrates the provisions of paragraph (a)(5) of
this section. The determinations illustrated in this
paragraph (c) that the corporation is required to make
are not exhaustive; there may be additional
determinations that the corporation is required to make
which relate to a determination listed in paragraph
(a)(5) of this section. The critical element is that
the corporation is required to make a determination
with respect to a matter for the purposes stated;
failure by the corporation actually to make a
determination (for example, because it does not
maintain proper books and records) does not prevent an
item from being a subchapter S item.
(2) Contributions. For purposes of its books
and records, or for purposes of furnishing information
to a shareholder, the S corporation must determine:
(i) The character of the amount received by
the corporation (for example, whether it is a
contribution, loan, or repayment of a loan);
* * * * * * *
To the extent that a determination of an item relating
to a contribution can be made from these and similar
determinations that the corporation is required to
make, that item is a subchapter S item. To the extent
that the determination requires other information,
however, that item is not a subchapter S item. Such
other information would include those factors used in
determining whether there is recapture under section 47
by the contributing shareholder of the general business
credit because of the contribution of property in
circumstances in which that determination is irrelevant
to the corporation.
(3) Distributions. For purposes of its books
and records, or for purposes of furnishing information
to a shareholder, the S corporation must determine:
(i) The character of the amount transferred
Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 Next
Last modified: May 25, 2011