SECTION 3. DEFINITIONS

For purposes of this revenue procedure: .01 Share of income. The term “share of income” means a partner’s or S corporation shareholder’s share of “income items” that exceeds its share of “expense items” from the partnership or S corporation that are attributable to the short taxable year;

.02 Income Items and Expense Items. The terms “income items” and “expense items” have the same meaning as in § 1.702–3T(b); and

.03 Short Taxable Year. The term “short taxable year” means the short taxable year of the partnership or S corporation that is required to effect the change in annual accounting period. An initial short year following an election under section 1362(a) will not be considered a “short taxable year” for purposes of this revenue procedure.