### Question
How does the law define pass-thru entity?


### Answer
Under *26 U.S.C. § 460*, **pass-thru entity** is defined as:

> any—



(I) partnership,



(II) S corporation, or



(III) trust

#### Citation:
  - *26 U.S.C. § 460*
  - Heading: **Subtitle A-Income Taxes > CHAPTER 1-NORMAL TAXES AND SURTAXES > Subchapter E-Accounting Periods and Methods of Accounting > PART II-METHODS OF ACCOUNTING > Subpart B-Taxable Year for Which Items of Gross Income Included**

