Day 20

Question 1

What would prevent a C Corp from becoming an S Corp?

Answer 1

The Corp has two types of outstanding stock such as Common and Preferred

MCQ-01984

Question 2

Who is ineligible to become an S Corp shareholder?

Answer 2

LLC with more than one owner - NO PARTNERSHIPS

MCQ-12545

Question 3

Who is ineligible to become an S Corp shareholder?

Answer 3

Partnerships and C corps

MCQ-15821

Question 4

When must an S election be made?

Answer 4

Match 15th of the following taxable year

MCQ-01959

Question 5

What is the built in gains tax for an S Corp?

Answer 5

The difference between the adjusted basis at the time of the election and the FMV

MCQ-05966

Question 6

What is the tax rate for built in gains tax?

Answer 6

21% the highest Corp income tax rate

MCQ-08662

Question 7

What is the requirement for shareholders to elect to become an S Corp?

Answer 7

All shareholders must give written consent

MCQ-08710

Question 8

What is the Charitable Contribution limit for C & S Corp?

Answer 8

C Corp is 10% limit of ordinary income

No deduction for S Corp and is separately stated

MCQ-04061

Question 9

For an S Corp is interest expense included in ordinary income calculation?

Answer 9

Yes

MCQ-06519

Question 10

What are some separately stated items not included in ordinary income for an S Corp?

Answer 10

1. Charity
2. Section 179
3. Interest income

MCQ-08658

Question 11

When are fringe benefits such as health insurance included in the S Corps shareholders income?

Answer 11

When they open 2% or more

MCQ-08706

Question 12

Do Capital loses affect the shareholders basis of an S Corp?

Answer 12

Yes

MCQ-01941

Question 13

What amount can an S Corp shareholder deduct as a loss on their individual tax return?

Answer 13

Only the amount of their basis in the S Corp

MCQ-06167