If a Corporation Elects to Be Taxed as an S

question 56

True/False

If a corporation elects to be taxed as an S corporation,then both it and its stockholders can avoid all Federal taxes.This provision was put into the Federal Tax Code in order to encourage the formation of small businesses.

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Definitions:

Licence

A grant of permission to do something that, without such permission, would be illegal, a trespass, or a tort.

Easement

A right to use the property of another, usually for a particular purpose.

Impossible Living

A term not generally recognized in standard discourse; appears to refer to conditions under which normal life or habitation is extremely difficult.

Lease Terminated

The end of a lease agreement, either through mutual agreement, by reaching its natural expiration, or through early termination under specific conditions.