Question

The post-termination transition period (PTTP) for an S corporation ends: Which of the following are separately stated items for an S corporation?

1) Ordinary income
2) Capital gains
3) Charitable contributions
4) Interest income

Answer 1

The correct options are 1,3,4). For an S corporation, capital gains, charitable contributions, and interest income are separately stated items, unlike ordinary income which is aggregated.

Step-by-step explanation:

The question pertains to separately stated items for an S corporation. These items are essential for shareholders to properly report their share of income and deductions on their individual tax returns. For an S corporation, the following are considered separately stated items:

• Capital gains
• Charitable contributions
• Interest income

While ordinary income is also reported by an S corporation, it is not treated as a separately stated item but rather is part of the aggregate pass-through income that flows through to the shareholders. Thus, from the options provided, capital gains, charitable contributions, and interest income are separately stated items.