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S corporations can pass through charitable contribution deductions to shareholders, who can deduct them on their individual returns.

Payments made to partners for services or use of capital that are determined without regard to the income of the partnership.

Provides eligible taxpayers with a deduction for a portion of their qualified business income (QBI) from a pass-through entity.

Each partner or S corporation shareholder must track their basis in the entity, which affects their ability to deduct losses and calculate gains.

Limitations on the deduction of losses to the amount that a partner or shareholder has at risk in the activity.

Allows a business to deduct the full purchase price of qualifying equipment or software during the tax year instead of capitalizing and depreciating.

Taxpayers can elect to deduct a portion of their organizational expenses in the year the business begins and amortize the remainder over a period of years.

Distributions are typically tax-free unless they exceed the partner's or shareholder's basis in the entity.

Business entity income is passed through to the individual partners or shareholders and reported on their individual tax returns.

In a liquidation, the partnership's distribution of cash and property to retiring partners can trigger gains or losses.

A tax imposed on S corporations for gains on the disposition of assets that were appreciated at the time of the S corporation election.

Income to the individual from pass-through entities may be subject to self-employment tax for active partners or S corporation shareholders.

Income and loss are allocated to partners or S corporation shareholders based on the operating agreement or ownership percentage.

Losses from passive activities can generally only be deducted against income from passive activities;

Payments to shareholders who work for an S corporation should be classified as wages and are subject to employment taxes.

Non-recognition of gains or losses when exchanging property used for business or investment purposes for similar property.

To elect S corporation status, the corporation must meet specific IRS criteria and file Form 2553. Termination of status can occur voluntarily or by failing to meet these criteria.

Losses on small business stock may be treated as ordinary losses rather than capital losses, subject to limitations.

Shareholder benefit that is treated as a dividend for tax purposes, even though it is not formally declared as such by the corporation.