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KNOWLEDGE CHECK

S corporation income taxation
Shareholder transactions

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* A distribution of cash to only one of two shareholders of an S corporation may NOT terminate the election as a result of a second class of stock if ____________.

An equivalent distribution is made to the other shareholder in the next year.

One shareholder lives in a higher-tax jurisdiction and the distribution is needed to pay the state income tax difference.

The receiving shareholder can show unusual economic hardship.

Such a distribution will never terminate an election.

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KNOWLEDGE CHECK

S corporation income taxation Shareholder transactions

S corporation income taxation Shareholder transactions

Check your knowledge on this topic

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S corporation income taxation
Shareholder transactions

S corporation income taxation
Shareholder transactions