why is the election for s corporation status attractive?

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Why is the election for S corp status attractive

1. Complete the following statements regarding the election of S corporation status. A qualifying election requires...

1. Complete the following statements regarding the election of S corporation status. A qualifying election requires the consent of (the majority/at least 80%/all) of the corporation's shareholders. The election is made on (Form 1120S/Form 1065/Form 2553). For S corporation status to apply in the current tax year, the election must be filed either (on the date of incorporation/in the previous year) or on or before the fifteenth day of the (first/third/fourth/sixth) month of the current year. 2. Complete the following...

2. The S corporation election, once made, can be terminated. How? Discuss how an S election...

2. The S corporation election, once made, can be terminated. How? Discuss how an S election might terminate. 3. Dana owns a one-third capital and profits interest in the Spendalot Partners partnership. The partnership uses the calendar year. Her partnership interest had a basis to her of $240,000. This year, the partnership distributes the following assets to Dana: (1) cash of $280,000; and (2) stocks held for investment, having a basis of $60,000 to the partnership, and a fair market...

List five disadvantages of making an S election. (Select all that apply.) A. An S corporation...

List five disadvantages of making an S election. (Select all that apply.) A. An S corporation is subject to the personal holding company tax or the accumulated earnings tax if they elect to have a year-end that is not a calendar year end. B. Allocation of ordinary income or loss and the separately stated items is based on the stock owned on each day of the tax year. Special allocations of particular items are not permitted, as they are in...

Which corporation is eligible to make the S election? A- Foreign corporation. B- A one-shareholder corporation....

Which corporation is eligible to make the S election? A- Foreign corporation. B- A one-shareholder corporation. C- An insurance company D- A US. bank E- None of the above can select S status.

Explain the tax effects that S corporation status has on shareholders.

The IRS may not waive an invalid S corporation election if the failure is caused by:...

The IRS may not waive an invalid S corporation election if the failure is caused by: A. a failure to obtain required consents. B. a reasonable cause for a late election. C. a shareholder refusing to sign the consent during the IRS-approved extension period. D. an inadvertent failure to qualify as a small business corporation based on extenuating circumstances.

C Corporation has an S corporation election in effect. During the 2017 calendar tax year, the...

C Corporation has an S corporation election in effect. During the 2017 calendar tax year, the corporation had ordinary taxable income of $200,000, and on January 15, 2017, the corporation paid dividends to shareholders in the amount of $120,000. How much taxable income, in total, must the shareholders of the corporation report on their 2017 tax returns? $120,000 dividend income is taxable income. Should total include $200k ordinary income?

A C corporation withh earnings and profits elects S corporation status in 20X1 and has the...

A C corporation withh earnings and profits elects S corporation status in 20X1 and has the following: Gross Receipts $100,000 Passive investment income $60,000 Expenses directly related to the passive investment income $10,000 Taxable income if the corporation had been a C corporation $30,000 A) 20,000 B) $29,167 C) $30,000 D)$50,000 What is the excess net passive investment income?

On February 10, 2018, Ace Corporation, a new calendar year corporation, elected S corporation status and...

On February 10, 2018, Ace Corporation, a new calendar year corporation, elected S corporation status and all shareholders consented to the election. There was no change in its shareholders during the current year. Ace met all eligibility requirements for an S corporation during the preelection portion of the year. What is the earliest date on which Ace can be recognized as an S corporation? February 10, 2018 January 1, 2019 February 10, 2019 January 1, 2018 In March of 2017...

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