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Elections

Instruction 1120-S (Schedule K-1) — Shareholder's Instructions for Schedule K-1 (Form 1120-S), Shareholder's Share of Income, Deductions, Credits, etc. · 2026-10-03 edition · updated 2026-10-04 · United States

Generally, the corporation decides how to figure taxable income from its operations. However, certain elections are made by you separately on your income tax return and not by the corporation. These elections are made under the following code sections.

Section 59(e) (deduction of certain qualified expenditures ratably over the period of time specified in that section). For details, see the instructions for code J under Box 12, later.
Section 263A(d) (preproductive expenses). See the instructions for code M under Box 12, later.
Section 617 (deduction and recapture of certain mining exploration expenditures).
Section 901 (foreign tax credit).

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▸Contents — Instruction 1120-S (Schedule K-1) — Shareholder's Instructions for Schedule K-1 (Form 1120-S), Shareholder's Share of Income, Deductions, Credits, etc.

Instruction 1120-S (Schedule K-1) — Shareholder's Instructions for Schedule K-1 (Form 1120-S), Shareholder's Share of Income, Deductions, Credits, etc.

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