ELECTION All eligible corporation must make the election for S Corporation status by filing Form 2553 All shareholders at the time the election is made must file a consent Each person who was a shareholder at any time during the part of the tax year before the election is made must also consent. If any […]
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REQUIREMENTS OF S STATUS An S corporation must Be a domestic and eligible corporation Have only one class of stock Have no more than 100 shareholders Have only allowed shareholders (individuals, estates, or qualified trusts) A Non – Resident alien (NRA) may not own shares of S Corp [Must be a citizen / resident […]
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1 Special taxes imposed on S corporations. Passive investment income (PII) tax Built-in gains (BIG) tax LIFO recapture General business credit recapture 1.01 PASSIVE INVESTMENT INCOME(PII) TAX Passive investment income includes gross receipts from royalties, rents, dividends, interest, and annuities. If an S corporation has pre-S corporation E&P (from the period it was a C […]
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