Question
What filing makes a corporation elect S status?
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Answer
Form 2553.
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Question
Why can an S corporation with accumulated C corporation E&P pay a taxable dividend?
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Answer
Distributions follow AAA, then accumulated E&P, which is taxable dividend income.
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Question
Where does an S shareholder's debt basis come from?
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Answer
Direct loans to the corporation only.
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Question
Why does the built-in gains tax apply only to former C corporations?
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Answer
It prevents avoiding corporate tax on pre-conversion appreciation.
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