If the shareholder left the S-Corp as of 12/31/25, they were shareholders for the entire tax year. Schedule K-1 for tax year 2025 should be marked final, but the ownership percentages will not change. To allow TurboTax to report this correctly, enter "12/30" as the date of the ownership change; percentages should be the same for both periods. This is a program limitation that will not be reported to the IRS.
Per IRS Instructions for Form 1120S Schedule K-1, Shareholder’s Pro Rata Share Items: "Shareholders who dispose of stock are treated as shareholders for the day of their disposition."
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