AC 750 Chapter 22

AC 750 Chapter 22 - Chapter 22 SCorporations S Corporations...

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C h a p t e r  22 S-Corporations
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AC 750 - Chapter 22 2 S Corporations Elected Status Income tax treatment of S corporations and their shareholders is similar  to partnerships.  All income, deductions, gains, losses  and credits flow through to the shareholders. The S corporation as an entity is  generally  not subject to the corporate  Federal Income Formation, redemption, liquidations and reorganizations follow C  corporation rules.
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AC 750 - Chapter 22 3 Eligibility Requirements §1361 1) Be an eligible domestic  Corporation 2) Not have more than 100 eligible shareholders* 3) Have only one class of stock  outstanding MUST meet ALL requirements at ALL times *The number of shareholders cannot exceed 100 at any moment during the taxable year.  Members from up to SIX generations of  a family can elect to be treated as one shareholder
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AC 750 - Chapter 22 4 S Election - §1362 A corporation must elect “S Status”.  The effective date is dependent upon  when the election is filed. Current year - due the 15th day of the third month of the taxable year, 
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AC 750 Chapter 22 - Chapter 22 SCorporations S Corporations...

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