S Corporations22-29.Tax-exempt income at the S level loses its special tax treatment for the shareholder.
REF:p. 22-410.An estate may be a shareholder of an S corporation.
REF:p. 22-511.Most limited liability partnerships can own stock in an S corporation.
REF:p. 22-712.Most IRAs can own stock in an S corporation.
REF:p. 22-713.An S corporation can be a shareholder in another corporation.
REF:p. 22-714.If a resident alien shareholder moves outside the U.S., the S election is terminated.
REF:p. 22-715.An S election is made on Form 2550.
16.An S election made before becoming a corporation is valid the next 22-month tax year.
REF:p. 22-817.For a new corporation, a premature S election may not be effective.ANS:TREF:p. 22-818.Only 51% of the shareholders must consent to an S election.
19.Persons who were shareholders during any part of the year before the election date, but were not shareholders when the elction was made, also must consent to the election.