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.

---

Definitions:

Truman Administration

The presidency of Harry S. Truman from 1945 to 1953, notable for ending World War II, initiating the Marshall Plan, and navigating the early Cold War era.

Margaret Chase Smith

A prominent American politician and the first woman to serve in both houses of the U.S. Congress, representing Maine as a Republican.

Anticommunist Agenda

Policies and activities aimed at combating communism and limiting its spread during the Cold War era.

Character Assassination

The deliberate and sustained effort to damage the reputation or credibility of an individual or organization.