Chapter M. s Corporation
1 Chapter 11: S Corporations
S CORPORATIONS (1of2) S corporation requirements S corporation election Termination of s election Tax year Ordinary income/loss and separately stated items Special S corporation taxes
2 S CORPORATIONS (1 of 2) S corporation requirements S corporation election Termination of S election Tax year Ordinary income/loss and separately stated items Special S corporation taxes
S CORPORATIONS (2of2) lllll Shareholder allocations Loss limitations Additional limitations Family s corporations Basis adjustments S corporation distributions 3
3 S CORPORATIONS (2 of 2) Shareholder allocations Loss limitations Additional limitations Family S corporations Basis adjustments S corporation distributions
S Corporation Requirements (1 of 2) Shareholder requirements No more than 75 shareholders Individuals, estates or certain types of trusts U.S. citizens or resident aliens Tax-exempt public charity or private foundation may be a shareholder as of1998
4 S Corporation Requirements(1 of 2) Shareholder requirements –No more than 75 shareholders – Individuals, estates or certain types of trusts –U.S. citizens or resident aliens –Tax-exempt public charity or private foundation may be a shareholder as of 1998
S Corporation Requirements (2 of 2) Corporation-related requirements Domestic corporation Must not be an" ineligible corporation Only one class of stock May be a Qualified Subchapter s Subsidiary(QSss
5 S Corporation Requirements(2 of 2) Corporation-related requirements –Domestic corporation – Must not be an “ineligible” corporation –Only one class of stock – May be a Qualified Subchapter S Subsidiary (QSSS)