For determining the number of shareholders in an S corporation, stock owned by a husband and wife is treated as owned by one shareholder.

Question

Quizplus · Accepted Answer

According to IRS regulations, for determining the number of shareholders in an S corporation, stock owned by a husband and wife is treated as one shareholder. This is because the law considers a husband and wife as a single economic unit for tax purposes.

For Determining the Number of Shareholders in an S Corporation