North Carolina § 105-131 - 2. Adjustment and characterization of income.

§ 105-131. 2. Adjustment and characterization of income.

Adjustment. - Each shareholder's pro rata share of an S Corporation's income is subject to the adjustments provided in G.S. 105-153.5 and G.S. 105-153.6. Repealed by Session Laws 1989, c. 728, s. 1.35. Characterization of Income. - S Corporation items of income, loss, deduction, and credit taken into account by a shareholder pursuant to G.S. 105-131.1(b) are characterized as though received or incurred by the S Corporation and not its shareholder. History (1987 (Reg. Sess., 1988), c. 1089, s. 1; 1989, c. 728, ss. 1.33, 1.35; 1993, c. 485, s. 8; 2006-17, s. 1; 2013-316, s. 1.3(a).) Editor's Note. - Session Laws 2013-316, s. 9(a), provides: "This act does not affect the rights or liabilities of the State, a taxpayer, or another person arising under a statute amended or repealed by this act before the effective date of its amendment or repeal; nor does it affect the right to any refund or credit of a tax that accrued under the amended or repealed statute before the effective date of its amendment or repeal." Section 105-134.6, referred to in subsection (a), was repealed by Session Laws 2013-316, s. 1.1(b), effective January 1, 2014. Effect of Amendments. - Session Laws 2006-17, s. 1, effective for taxable years beginning on or after January 1, 2006, rewrote subsection (a); in subsection (c) substituted "are" for "shall be." Session Laws 2013-316, s. 1.3(a), effective for taxable years beginning on or after January 1, 2014, substituted "G.S. 105-153.5 and G.S. 105-153.6 " for "G.S. 105-134.6" in subsection (a).