#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