Identify a Disadvantage of Being an S Corporation

question 32

Multiple Choice

Identify a disadvantage of being an S corporation.

• A)Estates can be shareholders.
• B)Losses flow through immediately to the shareholders.
• C)The AMT on corporations is avoided.
• D)Tax-exempt income flows through as excludible to shareholders.
• E)None of the above is a disadvantage of the S election.

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Definitions:

Avoid Accusations

is a conflict resolution strategy that involves addressing issues or situations without blaming or accusing others, aiming to promote constructive dialogue and solutions.

Express Anger

The act of communicating or displaying feelings of displeasure or hostility, often in response to perceived injustices or frustrations.

Engagement

Engagement is a formal agreement between two people to get married, or the period between the proposal and the wedding.

Future In-Laws

The parents of one's fiancé(e) or the parents of one's child's spouse, who are likely to become part of one's extended family through marriage.