Which of the following can be a shareholder of an S corporation a Resident

Which of the following can be a shareholder of an s

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#11. Which of the following can be a shareholder of an S corporation?a.Resident alien.A resident alien can be a shareholder of an S corporation.b.Partnership.A partnership cannot be a shareholder of an S corporation.c.Charitable remainder trust.A charitable remainder trust cannot be a shareholder of an S corporation.d.IRA An IRA cannot be a shareholder of an S corporation.e.Estate.An estate can be a shareholder of an S corporation.f.One-person LLC (disregarded entity).A one-person LLC (disregarded entity) can qualify as a shareholder of an S corporation.
#12. Bob Roman, the major owner of an S corporation, approaches you for some tax planning help. He would like to exchange some real estate in a like-kind transaction under § 1031 for real estate that may have some environmental liabilities. Prepare a letter to Bob outlining your suggestion. Bob’s address is 8411 Huron Boulevard, West Chester, PA 19382.The Kaufman CPA Group5533 West BoulevardParadise, PA 90078March 11, 2015Bob Roman8411 Huron BoulevardWest Chester, PA 19382Dear Mr. Roman:An exchange of real estate in a like-kind transaction under § 1031 for real estate will allow you to defer any gain that results from the exchange. However, this deferred gain under § 1031 is not tax-free, it is tax-deferred, until the disposition of the real estate. Any gain or loss from the future disposition or sale of this real estate will flow through to your tax return. Additionally, the environmental liabilities associatedwith the real estate may cause you to have some taxable gain in the year of the
exchange. If you have any further questions, please feel free to contact me at (999) 888-7777. Sincerely,Heather Kaufman#13. On March 2, 2013, the two 50% shareholders of a calendar year corporation decide to elect S status. One of the shareholders, Terry, purchased her stock from a previous shareholder (a nonresident alien) on January 18, 2013. Identify any potentialproblems for Terry and the corporation. In order to for the S election to be effective for 2013, the corporation must qualify as a small business corporation for that whole year. However, Terry had bought her stock from a nonresident alien in 2013. Nonresident aliens are not permitted to own S corporation stock, thus the corporation does not qualify as a small business corporation for 2013. #14. Caleb Samford calls you and says that his two-person S corporation was involuntarily terminated in February 2012. He asks you if they can make a new S election now, in November 2013. Draft a memo for the file, outlining what you told Caleb.MEMORANDUMFrom:The Kaufman CPA GroupTo:Caleb SamfordRe:New S election Date:March 11, 2015Tax Issue:Caleb Samford’s S corporation status was involuntarily terminated in Februray 2012. Mr. Samford wishes to make a new S election in November 2013. However, corporations whose S election has been terminated must wait five years before an S corporation reelection is permissible. Authorities:Regulation § 1.1362-5(a) specifies election of S corporation status after termination.Conclusions:The five year waiting period may be waived under certain circumstances. These certain circumstances are as follows:If 50 percent of the stock in the corporation has different ownership after the first year of the applicable termination date.If the termination was not reasonably within the control of the corporation orof the shareholders who had a substantial interest in the corporation.Recommendations:If either of the aforementioned circumstances is applicable in
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