What is a post-termination transition period? What loss carryovers can an S corporation shareholder deduct during this period? OA. A two-year period during the time leading up to the termination of the S corporation's last tax return which will include the shareholder's income and losses to be allocated. Shareholders can deduct loss carryovers during this period only if B. A 120-day perniod beginning on the determination date. This is the date on which the court decision becomes final or a closing agreement is entered into. Shareholders of an S corporation can deduct loss carryovers up to their adjusted A one-year period immediately ollowing he last day o the final S corporation tax year in which oss and deduction carryovers can be used by the S corporation's shareholders even though the S election has been revoked or eminated O D. None of the above. they pass the at-risk rules. basis of the stock. The S corporation also deducts the loss carryovers on its final tax return. Loss carryovers can be deducted only up to the adjusted basis of the shareholder's stock at the end of the post-termination transition period