If an S Corporation Has C Corporation E & P

question 1

Short Answer

If an S corporation has C corporation E & P and passive investment income in excess of
% of its gross receipts for consecutive taxable years, the S election is terminated at the beginning of the year.

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Definitions:

Dismiss

To officially order or decide that something or someone should be removed from consideration or a position.

Delegation

The process of assigning responsibility and authority to others to carry out specific activities while retaining ultimate accountability.

Development

The process of growth, progress, or evolution of an individual, organization, or system.

Overloaded Manager

describes a leader burdened with excessive workloads, responsibilities, or expectations, potentially impeding effective management and decision-making.