Sorry for the delay in responding, I was off enjoying the sunshine on a great Cape Cod day.
Thanks to Roger for clarifying my answer, but as he said, the choices I gave you are the only two options available, and yes, you can not determine the numbers for the shareholders' K-1s until the year has been completed.
I will say, that unless the ownership change occurs near the end of the year, we usually elect to use Option one & close the books the day before the ownership change. Further, when gifts are involved, we normally have our clients make those transfers on the first day of business in the New Year.
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