A Section 382 Study (also called an Owner Shift Analysis) is a detailed analysis of the changes in the ownership of a loss corporation’s 5-percent shareholders over a 3-year period. The three year period is called the testing period (or Analysis Period) and could potentially be shorter if 1 or more ownership changes occurred during the testing period.
As illustrated below, there are multiple steps involved to prepare a Section 382 Study.
Typically, a Section 382 Study is updated quarterly to reflect the changes, if any, in the ownership of 5-percent shareholders during the Analysis Period. However, this is not always the case. Some loss corporations do not have significant activity with their stock and therefore sufficient testing dates to warrant quarterly updates.