An S Election Is Made on the Shareholder's Form 1040

question 129

True/False

An S election is made on the shareholder's Form 1040.

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Definitions:

Capital Gains

The profit from the sale of an asset or investment when the selling price exceeds the purchase price.

Non-Eligible Dividends

Dividends that are paid out by a company from earnings that are not subject to the preferential tax treatment as eligible dividends in some jurisdictions.

Average Tax Rate

The proportion of total taxable income that an individual or entity pays in taxes, calculated by dividing the total tax paid by the total taxable income.

Capital Gains

Capital gains are the profits realized from the sale of assets such as stocks, bonds, or real estate, which exceed the purchase price.