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What is the difference between separately and nonseparately stated items for an S corp?

The important thing to understand is that S Corporations are a type of passthrough entity, which means that the shareholders’ pay the tax. However, there are certain items that are nonseparately stated, which means that they are included on the tax return for the S Corp. Nonseparately stated items are items that occur in the normal course of business:

Separately stated items are items that are included on the K-1 for the shareholder of the S Corp. Separately stated items would include:

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