United States IRC sections
Statute section
IRC section 1366
Pass-thru of items to shareholders
Country
United States
Section
1366
Updated
2026-05-20
Operative text
Section 1366 passes the items of income, loss, deduction, and credit of an S corporation through to its shareholders pro rata. Shareholder basis under Section 1367 must be tracked to determine the deductibility of losses and the tax-free nature of distributions.
Cross-references
26 U.S.C. 1367
Primary sources
- 26 U.S.C. section 1366Verified 2026-05-20
Important disclaimer
This library is for general tax education only. Always verify filing obligations, due dates, and tax consequences against the cited primary source or with a qualified tax professional.