Page 188 - Large Business IRS Training Guides

Excess Taxable Income

• Excess taxable income (ETI) is the amount of an

S corporation’s ATI that is in excess of the

amount of ATI required to support the

S corporation’s BIE deduction.

• This amount is computed by an S corporation and

is allocated to the shareholder.

• This amount is used by the shareholder in

determining their current year ATI.

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