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@PATAX wrote:

 Also since it is not taxable, one must ask why are they asking for information on it?

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The options determine (1) when the Basis is added for shareholders and partners, and (2) for purposes of §448(c) for the $25+ million threshold.

So actually, it can be much more important for S-corporations and Partnerships because that determines when they get Basis from the tax-exempt income.

I would think it would be rather unusual for Schedule C to worry about the the §448(c) threshold of $25+ million, and Schedule Cs don't need to worry about Basis, so that seem rather pointless for a Schedule C.