Which of the following is not a reason why a corporation would want to elect S corporation status?
A)To pass through losses to the shareholders.
B)To avoid the alternative minimum tax at the entity level.
C)To make special allocations of income and expenses to shareholders.
D)To avoid taxation at the entity level.
E)None of the above.

Question

Quizplus · Accepted Answer

S corporations cannot make special allocations of income and expenses to shareholders; allocations must be based on ownership percentages.

Which of the Following Is Not a Reason Why a Corporation