Section 105-131.2 - Adjustment and characterization of income(a) 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rata share of an S Corporation's income is subject to the adjustments provided in G.S. 105-153.5 and G.S. 105-153.6.(b) Repealed by Session Laws 1989, c. 728, s. 1.35.(c) Characterization of Income.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.N.C. Gen. Stat. § 105-131.2
Amended by 2013 N.C. Sess. Laws 316,s. 1.3-a, eff. 1/1/2014.Amended by 2006 N.C. Sess. Laws 17,s. 1, eff. 1/1/2006. 1987 (Reg. Sess., 1988), c. 1089, s. 1; 1989, c. 728, ss.1.33, 1.35; 1993, c. 485, s. 8.).2006 N.C. Sess. Laws 17,s. 4, states, "This act is effective for taxable years beginning on or after January 1, 2006."