§1.1377-1 Pro rata share.

(a) Computation of pro rata shares.

(1) In general.

(2) Special rules.

(i) Days on which stock has not been issued.

(ii) Determining shareholder for day of stock disposition.

(iii) Shareholder trust conversions.

(b) Election to terminate year.

(1) In general.

(2) Affected shareholders.

(3) Effect of the terminating election.

(i) In general.

(ii) Due date of S corporation return.

(iii) Taxable year of inclusion by shareholder.

(iv) S corporation that is a partner in a partnership.

(4) Determination of whether an S shareholder's entire interest has terminated.

(5) Time and manner of making a terminating election.

(i) In general.

(ii) Affected shareholders required to consent.

(iii) More than one terminating election.

(c) Examples.

§1.1377-2 Post-termination transition period.

(a) In general.

(b) Special rules for post-termination transition period.

(c) Determination defined.

(d) Date a determination becomes effective.

(1) Determination under section 1313(a).

(2) Written agreement.

(3) Implied agreement.

§1.1377-3 Effective date.