Accounts | Tax | Finance
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 […]
Continue reading
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 […]
Continue reading