Identify a Disadvantage of Being an S Corporation

question 53

Multiple Choice

Identify a disadvantage of being an S corporation.

• A) Estates can be shareholders.
• B) Losses flow through immediately to the shareholders.
• C) Section 1202 treatment (qualified small business stock) is not available.
• D) Tax-exempt income flows through as excludible to shareholders.
• E) All of these are advantages of the S election.

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