Colorado Revised Statutes Title 39. Taxation § 39-22-323. Modification and characterization of income

(1) An S corporation's income attributable to the state shall, for the purposes of section 39-22-322, be subject to the modifications provided in section 39-22-304.

(2) Each resident shareholder's pro rata share of the S corporation's income not attributable to the state shall, for the purposes of section 39-22-322(2), be subject to the modifications provided in section 39-22-104.

(3) The character of any S corporation item taken into account by a shareholder of an S corporation pursuant to section 39-22-322(2) shall be determined as if such item were received or incurred by the S corporation and not its shareholder.