Durrabusiness Is Organized As A Regular C Corporation In 1986 At The Beginning Of The Present Year Durrabusiness Elects To Be An S Corporation Will The Election Cause A Recapture Of The General Business Investment

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that a corporation must meet in order to qualify under Subchapter S? 1. Must be a domestic corporation 2. Must have no more than 100 shareholders 3. Must include only eligible shareholders 4. Must have only one class of stock 5. Must not be an ineligible corporation (pg 21-4 of text) 21-13 What limits are placed on the selection of a tax year of an S corporation? S corporations are required to have their end of year on December 31 or any other tax year for which it establishes a business purpose

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Devry Homework for, Week 5

that a corporation must meet in order to qualify under Subchapter S? -Be a domestic corporation; - Have no more than 100 shareholders; - The S Corporation must include only eligible shareholders in the election; - The entity must have only one class of stock; - The business must not be an ineligible corporation. 21-13 What limits are placed on the selection of a tax year of an S corporation? How do these limits differ from those applicable to C corporations and partnerships? An S Corp. must

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