Which one of the following individuals or entities is ineligible to be an S corporation shareholder?
A)an estate
B)resident alien of the United States
C)a voting trust where all of the beneficiaries are U.S. citizens
D)a partnership where all of the partners are U.S. citizens

Question

Quizplus · Accepted Answer

S corporations are closely held corporations that pass corporate income, losses, deductions, and credits through to their shareholders for federal tax purposes. Shareholders of S corporations must be individuals, certain trusts, and estates, or certain tax-exempt organizations. Partnerships, as well as corporations, are ineligible to be shareholders in an S corporation.

Which One of the Following Individuals or Entities Is Ineligible