Which of the following would terminate a Subchapter S election?
A)Estate becomes a shareholder.
B)Grantor trust becomes a shareholder.
C)Voting trust becomes a shareholder.
D)Partnership becomes a shareholder.

Question

Quizplus · Accepted Answer

A partnership cannot be a shareholder in an S corporation, which means if a partnership becomes a shareholder, it would terminate the Subchapter S election.

Which of the Following Would Terminate a Subchapter S Election