Maria resides in San Antonio, Texas. She formed MZE Corporation under the state laws

Maria resides in San Antonio, Texas. She formed MZE Corporation under the state laws of Texas. Maria anticipates that she will conduct her business activities in both Mexico and the United States. Is MZE eligible to elect S corporation status? Explain.

Expert Solution

No, MZE Corporation is not eligible to elect S corporation status.

To be eligible to elect S corporation status, a corporation must be a domestic corporation as defined in section 7701(a)(4) of the Internal Revenue Code.
A domestic corporation is a corporation that was created or organized in the United States or under the laws of the United States, any state, the District of Columbia, the possessions of the United States, or any territory or insular possession subject to the jurisdiction of the United States.

Therefore, because MZE Corporation was created in Texas, it is not eligible to elect S corporation status.

Nabeel answered 1 year ago

The San Antonio Aviation Company of San Antonio, Texas, has received an order for 195,000 seats...

The San Antonio Aviation Company of San Antonio, Texas, has received an order for 195,000 seats for the Airbus A-320 from the Airbus Consortium in Great Britain, payment to be in British pounds sterling. The seats will be shipped to Airbus under the terms of a letter of credit issued by the Royal Bank of Scotland on behalf of Airbus for the benefit of SA Aviation. This Letter of Credit specifies that the face value of the shipment, £20,500,000, will...

What products does San Antonio, Texas import and export? What products does it have a comparative...

What products does San Antonio, Texas import and export? What products does it have a comparative advantage or specialization in producing and trading? Describe how economic forces have shaped the urban landscape in terms of rent gradients, land use patterns, and building height and density.

Mr. Andy Capp was recently arrested by San Antonio police for allegedly driving under the influence...

Mr. Andy Capp was recently arrested by San Antonio police for allegedly driving under the influence of alcohol (DUI). Calculate his estimated BAC range based on the following factors. Andy (male) at the time of the incident weighed 160 lbs (pounds) and told his defense attorney that he had only consumed six (6) beers and four (4) shots of hard liquor that night. He recalls that he had started drinking at 6:00 pm at the Hilltop Pub and was pulled...

The legislature of the State of Texas has adopted a series of laws which impose a...

The legislature of the State of Texas has adopted a series of laws which impose a charge on business entities operating within the State. They say this is not an income tax because the taxpayer can use several different bases for calculating the amount of money due the State. Because of the federal system under which we operate, each state has legal jurisdiction over the entities operating within the bounds of the state. The legal reach of the state does...

Maria, a resident of Mexico City, Mexico, formed MZE Corp. in Mexico under

Maria, a resident of Mexico City, Mexico, formed MZE Corp. in Mexico under Mexican law but planned to do business in the United States. Is MZE eligible to elect S corporation status in the United States? Explain.

Betty is an aspiring CPA. In 2020, she finished her last semester at San Diego State,...

Betty is an aspiring CPA. In 2020, she finished her last semester at San Diego State, where she graduated with an undergraduate degree in accounting. Betty was a full-time student and paid $3,500 in tuition and to San Diego State in 2020 and paid $750 for required textbooks. Betty already claimed the American Opportunity Tax Credit in 2017, 2018 and 2019. Betty’s husband, Barry, is a nurse. He is also pursuing his Masters in Nursing at University of San Diego....

Nancy Pelosi formed a new corporation which she owns 100% on January 1, 2017, Losing Is...

Nancy Pelosi formed a new corporation which she owns 100% on January 1, 2017, Losing Is My New Role, Inc. She contributed an e-mail server to the corporation. The e-mail server had a basis of $90,000. The e-mail server had a debt on it of $150,000 which was contributed along with the server. The e-mail server had a fair market value of $190,000 based upon its value as a collectible as Nancy Pelosi was not the original owner. Pelosi owned...

Question