Factors that should be considered in making the S corporation election for the current tax year include the following:
A)Are at least 80% of the shareholders willing to consent to the election?
B)Can the requirements for qualification be satisfied by the due date of the tax return?
C)Will the corporation have total capital not in excess of $1 million?
D)None of the above.
E)All of the above.

Question

Quizplus · Accepted Answer

All of the shareholders are required to consent to the S corporation election (choice a.).The qualification requirements must be satisfied at the time of the election (choice b.).Since the qualification requirements become maintenance requirements,these requirements must continue to be satisfied.The not in excess of $1 million capital requirement is associated with § 1244 treatment rather than a requirement for an S corporation election (choice c.).

Factors That Should Be Considered in Making the S Corporation