A Corporation May Alternate Between S Corporation and C Corporation

question 45

True/False

A corporation may alternate between S corporation and C corporation status each year depending on which results in more tax savings.

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Definitions:

Charitable Contributions

Donations made to qualified organizations that may be deductible from taxable income if itemized.

Travel Expenses

Travel expenses are costs associated with traveling for the purpose of conducting business, deductible under IRS regulations.

DRD

Dividends-Received Deduction, a tax deduction that U.S. corporations receive for dividends distributed by other corporations in which they have an ownership stake.

Domestic Corporation

A corporation that is registered and operates within the legal jurisdiction of a specific country.