A Corporation May Alternate Between S Corporation and C Corporation

question 45

True/False

A corporation may alternate between S corporation and C corporation status each year depending on which results in more tax savings.

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Definitions:

Chapter 7

A chapter of the U.S. Bankruptcy Code that involves the liquidation of a debtor's assets to pay off creditors.

Three-Year Period

A specific duration of time lasting exactly three years.

Nonprofit Credit Counselor

An advisor typically affiliated with a nonprofit organization who provides guidance on managing debt, budgeting, and improving personal financial health.

Chapter 13

A form of bankruptcy that allows individuals earning a regular income to develop a plan to repay all or part of their debts over time, usually three to five years.