Which of the following would not result in an S election termination?
A)Having 120 unrelated shareholders
B)Having a C corporation as a shareholder
C)Issuing a second class of stock
D)Having excess passive investment income for two consecutive years
E)None of the choices are correct.

Question

Quizplus · Accepted Answer

Excess passive investment income for two consecutive years does not terminate an S election; it requires three consecutive years for termination.

Which of the Following Would Not Result in an S