Which of the following statements about stock ownership is not correct?
A)A C corporation can own stock of an S corporation.
B)An S corporation can own stock of a C corporation.
C)A tax-exempt charity can own stock of an S corporation.
D)An S corporation can own stock of a Qualified Subchapter S Subsidiary.

Question

Quizplus · Accepted Answer

An S corporation can have a C corporation as a shareholder, but a C corporation cannot own stock in an S corporation. The IRS has specific eligibility criteria for S corporation shareholders, which exclude C corporations.

Which of the Following Statements About Stock Ownership Is Not