To be a shareholder, a person must be a record holder of a share of stock of a corporation on any day during the corporation's taxable year. Shareholder or partner income means compensation and director fees attributed to any person during the period that such person has ownership in the entity. Compensation includes wages, payroll taxes, and other payments made for the benefit of the shareholder or partner. For the period of January through September of 1987, Shareholders A and B each owned 5,000 shares of stock. On October 1 the stock of A was transferred to Shareholder C. Shareholders A, B and C were full-time employees during the period they had stock ownership.
All shareholders are active shareholders for small business credit.