The character of any S corporation item taken into account by a shareholder of an S corporation under Section 27-8-7(2) shall be determined as if such item were received or incurred by the S corporation and not its shareholder.
Character of items received by corporation but accounted for by shareholder
Miss. Code Ann. § 27-8-9, under Mississippi S Corporation Income Tax Act.
Miss. Code Ann. § 27-8-9