Eligibility Requirements for S Corps - CPA Regulation (REG)
Card 1 of 24
Which of the following conditions will prevent a corporation from qualifying as an S corporation?
Which of the following conditions will prevent a corporation from qualifying as an S corporation?
Tap to reveal answer
Eligibility requirements for S corps include limitations on who may be a shareholder (such as individuals, estates, trusts, and charitable organizations); the number of shareholders (no more than 100); and only one class of common stock (preferred stock is not permitted). However, differences in common stock voting rights are allowed.
Eligibility requirements for S corps include limitations on who may be a shareholder (such as individuals, estates, trusts, and charitable organizations); the number of shareholders (no more than 100); and only one class of common stock (preferred stock is not permitted). However, differences in common stock voting rights are allowed.
← Didn't Know|Knew It →
A company terminated its S corporation status for the current tax year. When can the company reelect S status?
A company terminated its S corporation status for the current tax year. When can the company reelect S status?
Tap to reveal answer
Once an S corporation has elected to terminate its status, the corporation must wait until the beginning of the fifth year after the year of termination before it can reelect S status.
Once an S corporation has elected to terminate its status, the corporation must wait until the beginning of the fifth year after the year of termination before it can reelect S status.
← Didn't Know|Knew It →
Assuming all other requirements are met, a corporation may elect to be treated as an S corporation under the Internal Revenue Code if it has:
Assuming all other requirements are met, a corporation may elect to be treated as an S corporation under the Internal Revenue Code if it has:
Tap to reveal answer
Election for S corporation status requires the agreement of all voting and nonvoting shareholders. Additionally, eligibility for election to S status is the same as eligibility for S corporations themselves: only certain persons may be a shareholder (such as individuals, estates, trusts, and charitable organizations – corporations and partnerships are not allowed); there may no more than 100 shareholders; and there may be only one class of common stock (preferred stock is not permitted).
Election for S corporation status requires the agreement of all voting and nonvoting shareholders. Additionally, eligibility for election to S status is the same as eligibility for S corporations themselves: only certain persons may be a shareholder (such as individuals, estates, trusts, and charitable organizations – corporations and partnerships are not allowed); there may no more than 100 shareholders; and there may be only one class of common stock (preferred stock is not permitted).
← Didn't Know|Knew It →
The tax on built-in gains is a corporate level tax on S corps that dispose of assets that:
The tax on built-in gains is a corporate level tax on S corps that dispose of assets that:
Tap to reveal answer
An S corp may have to pay a corporate level built in gains tax when it disposes of assets that were appreciated in value at the time the company converted from a C corp to an S corp.
An S corp may have to pay a corporate level built in gains tax when it disposes of assets that were appreciated in value at the time the company converted from a C corp to an S corp.
← Didn't Know|Knew It →
If an S corporation has no accumulated earnings and profits, the amount distributed to a shareholder:
If an S corporation has no accumulated earnings and profits, the amount distributed to a shareholder:
Tap to reveal answer
If an S corporation has no accumulated earnings and profits, the amount distributed to a stockholder decreases the basis for the stock. The distribution is nontaxable to the extent of the shareholder’s basis.
If an S corporation has no accumulated earnings and profits, the amount distributed to a stockholder decreases the basis for the stock. The distribution is nontaxable to the extent of the shareholder’s basis.
← Didn't Know|Knew It →
A corporation may elect to be treated as an S corporation under the IRC if:
A corporation may elect to be treated as an S corporation under the IRC if:
Tap to reveal answer
Of the following, only having 100 or fewer shareholders would allow the corporation to elect an S corp election. The other criteria negate this.
Of the following, only having 100 or fewer shareholders would allow the corporation to elect an S corp election. The other criteria negate this.
← Didn't Know|Knew It →
Which of the following conditions will prevent a corporation from qualifying as an S corporation?
Which of the following conditions will prevent a corporation from qualifying as an S corporation?
Tap to reveal answer
Eligibility requirements for S corps include limitations on who may be a shareholder (such as individuals, estates, trusts, and charitable organizations); the number of shareholders (no more than 100); and only one class of common stock (preferred stock is not permitted). However, differences in common stock voting rights are allowed.
Eligibility requirements for S corps include limitations on who may be a shareholder (such as individuals, estates, trusts, and charitable organizations); the number of shareholders (no more than 100); and only one class of common stock (preferred stock is not permitted). However, differences in common stock voting rights are allowed.
← Didn't Know|Knew It →
A company terminated its S corporation status for the current tax year. When can the company reelect S status?
A company terminated its S corporation status for the current tax year. When can the company reelect S status?
Tap to reveal answer
Once an S corporation has elected to terminate its status, the corporation must wait until the beginning of the fifth year after the year of termination before it can reelect S status.
Once an S corporation has elected to terminate its status, the corporation must wait until the beginning of the fifth year after the year of termination before it can reelect S status.
← Didn't Know|Knew It →
Assuming all other requirements are met, a corporation may elect to be treated as an S corporation under the Internal Revenue Code if it has:
Assuming all other requirements are met, a corporation may elect to be treated as an S corporation under the Internal Revenue Code if it has:
Tap to reveal answer
Election for S corporation status requires the agreement of all voting and nonvoting shareholders. Additionally, eligibility for election to S status is the same as eligibility for S corporations themselves: only certain persons may be a shareholder (such as individuals, estates, trusts, and charitable organizations – corporations and partnerships are not allowed); there may no more than 100 shareholders; and there may be only one class of common stock (preferred stock is not permitted).
Election for S corporation status requires the agreement of all voting and nonvoting shareholders. Additionally, eligibility for election to S status is the same as eligibility for S corporations themselves: only certain persons may be a shareholder (such as individuals, estates, trusts, and charitable organizations – corporations and partnerships are not allowed); there may no more than 100 shareholders; and there may be only one class of common stock (preferred stock is not permitted).
← Didn't Know|Knew It →
The tax on built-in gains is a corporate level tax on S corps that dispose of assets that:
The tax on built-in gains is a corporate level tax on S corps that dispose of assets that:
Tap to reveal answer
An S corp may have to pay a corporate level built in gains tax when it disposes of assets that were appreciated in value at the time the company converted from a C corp to an S corp.
An S corp may have to pay a corporate level built in gains tax when it disposes of assets that were appreciated in value at the time the company converted from a C corp to an S corp.
← Didn't Know|Knew It →
If an S corporation has no accumulated earnings and profits, the amount distributed to a shareholder:
If an S corporation has no accumulated earnings and profits, the amount distributed to a shareholder:
Tap to reveal answer
If an S corporation has no accumulated earnings and profits, the amount distributed to a stockholder decreases the basis for the stock. The distribution is nontaxable to the extent of the shareholder’s basis.
If an S corporation has no accumulated earnings and profits, the amount distributed to a stockholder decreases the basis for the stock. The distribution is nontaxable to the extent of the shareholder’s basis.
← Didn't Know|Knew It →
A corporation may elect to be treated as an S corporation under the IRC if:
A corporation may elect to be treated as an S corporation under the IRC if:
Tap to reveal answer
Of the following, only having 100 or fewer shareholders would allow the corporation to elect an S corp election. The other criteria negate this.
Of the following, only having 100 or fewer shareholders would allow the corporation to elect an S corp election. The other criteria negate this.
← Didn't Know|Knew It →
Which of the following conditions will prevent a corporation from qualifying as an S corporation?
Which of the following conditions will prevent a corporation from qualifying as an S corporation?
Tap to reveal answer
Eligibility requirements for S corps include limitations on who may be a shareholder (such as individuals, estates, trusts, and charitable organizations); the number of shareholders (no more than 100); and only one class of common stock (preferred stock is not permitted). However, differences in common stock voting rights are allowed.
Eligibility requirements for S corps include limitations on who may be a shareholder (such as individuals, estates, trusts, and charitable organizations); the number of shareholders (no more than 100); and only one class of common stock (preferred stock is not permitted). However, differences in common stock voting rights are allowed.
← Didn't Know|Knew It →
A company terminated its S corporation status for the current tax year. When can the company reelect S status?
A company terminated its S corporation status for the current tax year. When can the company reelect S status?
Tap to reveal answer
Once an S corporation has elected to terminate its status, the corporation must wait until the beginning of the fifth year after the year of termination before it can reelect S status.
Once an S corporation has elected to terminate its status, the corporation must wait until the beginning of the fifth year after the year of termination before it can reelect S status.
← Didn't Know|Knew It →
Assuming all other requirements are met, a corporation may elect to be treated as an S corporation under the Internal Revenue Code if it has:
Assuming all other requirements are met, a corporation may elect to be treated as an S corporation under the Internal Revenue Code if it has:
Tap to reveal answer
Election for S corporation status requires the agreement of all voting and nonvoting shareholders. Additionally, eligibility for election to S status is the same as eligibility for S corporations themselves: only certain persons may be a shareholder (such as individuals, estates, trusts, and charitable organizations – corporations and partnerships are not allowed); there may no more than 100 shareholders; and there may be only one class of common stock (preferred stock is not permitted).
Election for S corporation status requires the agreement of all voting and nonvoting shareholders. Additionally, eligibility for election to S status is the same as eligibility for S corporations themselves: only certain persons may be a shareholder (such as individuals, estates, trusts, and charitable organizations – corporations and partnerships are not allowed); there may no more than 100 shareholders; and there may be only one class of common stock (preferred stock is not permitted).
← Didn't Know|Knew It →
The tax on built-in gains is a corporate level tax on S corps that dispose of assets that:
The tax on built-in gains is a corporate level tax on S corps that dispose of assets that:
Tap to reveal answer
An S corp may have to pay a corporate level built in gains tax when it disposes of assets that were appreciated in value at the time the company converted from a C corp to an S corp.
An S corp may have to pay a corporate level built in gains tax when it disposes of assets that were appreciated in value at the time the company converted from a C corp to an S corp.
← Didn't Know|Knew It →
If an S corporation has no accumulated earnings and profits, the amount distributed to a shareholder:
If an S corporation has no accumulated earnings and profits, the amount distributed to a shareholder:
Tap to reveal answer
If an S corporation has no accumulated earnings and profits, the amount distributed to a stockholder decreases the basis for the stock. The distribution is nontaxable to the extent of the shareholder’s basis.
If an S corporation has no accumulated earnings and profits, the amount distributed to a stockholder decreases the basis for the stock. The distribution is nontaxable to the extent of the shareholder’s basis.
← Didn't Know|Knew It →
A corporation may elect to be treated as an S corporation under the IRC if:
A corporation may elect to be treated as an S corporation under the IRC if:
Tap to reveal answer
Of the following, only having 100 or fewer shareholders would allow the corporation to elect an S corp election. The other criteria negate this.
Of the following, only having 100 or fewer shareholders would allow the corporation to elect an S corp election. The other criteria negate this.
← Didn't Know|Knew It →
Which of the following conditions will prevent a corporation from qualifying as an S corporation?
Which of the following conditions will prevent a corporation from qualifying as an S corporation?
Tap to reveal answer
Eligibility requirements for S corps include limitations on who may be a shareholder (such as individuals, estates, trusts, and charitable organizations); the number of shareholders (no more than 100); and only one class of common stock (preferred stock is not permitted). However, differences in common stock voting rights are allowed.
Eligibility requirements for S corps include limitations on who may be a shareholder (such as individuals, estates, trusts, and charitable organizations); the number of shareholders (no more than 100); and only one class of common stock (preferred stock is not permitted). However, differences in common stock voting rights are allowed.
← Didn't Know|Knew It →
A company terminated its S corporation status for the current tax year. When can the company reelect S status?
A company terminated its S corporation status for the current tax year. When can the company reelect S status?
Tap to reveal answer
Once an S corporation has elected to terminate its status, the corporation must wait until the beginning of the fifth year after the year of termination before it can reelect S status.
Once an S corporation has elected to terminate its status, the corporation must wait until the beginning of the fifth year after the year of termination before it can reelect S status.
← Didn't Know|Knew It →