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.

---

Definitions:

Theoretical Size

The ideal, nominal size of a part or feature as defined in drawings, before tolerances are applied.

Limits

In engineering and manufacturing, limits refer to the maximum and minimum dimensions a part can have to be considered acceptable.

Allowance

The intentional difference in dimensions between mating parts to ensure a proper fit.

Basic Hole System

A hole basis system of fits in manufacturing where the hole is the component with the basic size, and the shafts are adjusted for different fits.