Entering change of ownership information for shareholders

Alerts and notices
  1. Choose File > Open Client to open the appropriate S Corporation client.
  2. Click the Shareholder Information Shareholder Information button button (or choose View > Shareholder Information) to open the Shareholder Information window.
  3. In the Shareholder tab, click the Change of Ownership button to open the Change of Ownership dialog.
  4. At the top of the first Date column, enter the date of ownership change and press ENTER. (The date must 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 just added, enter the number of shares owned as of the date at the top of the Date column.
  6. Enter additional date changes, up to 23, by repeating steps 4 and 5. When you enter additional 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.


  • If the shareholder ownership percentage was previously overridden, the change of ownership will not calculate properly unless you delete the overrides. To delete the overrides, choose Edit > Overrides > Delete Shareholder Overrides.
  • If the change of ownership occurs on the first day of the tax year, change the Beginning of year shares amount for each shareholder affected. To do so, choose View > Shareholder Information > Shareholder tab.
  • To delete or remove a date, double-click it to highlight the date and then press the Delete key on your keyboard.
  • To make a 1377 or a 1368 election, enter the date of the change of ownership in the field IRC 1377 or 1368 Dates Only. The first day of the year cannot be entered in these fields. A 1377 election would be made if one of the shareholders terminated their interest during the year. A 1368 election would be made if a shareholder changed their ownership percentage in the S Corporation by 20% or more during the year.

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