S Corporations Without Earnings and Profits from Prior C Corporation

question 26

True/False

S corporations without earnings and profits from prior C corporation years are not subject to the excess net passive income tax.

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Definitions:

Gold Find

The discovery of gold, typically in significant quantities, which often prompts mining activities and economic interest in the area.

Dramatic Departure

A significant and often sudden change or shift from conventional behavior or previous patterns.

Financial Intermediary

An institution that acts as a middleman between savers and borrowers, facilitating the flow of funds in the financial markets.

Fraudulent Means

Fraudulent means involve deceit, trickery, or dishonest conduct with the intention of gaining an unfair advantage or causing harm to another party.