Identify which of the following statements is true.
A)An election for an S corporation to use the Sec. 179 expensing election is made by the corporation and not by its shareholders.
B)The S corporation's separately stated items are in general the same ones that apply in partnership taxation.
C)An S corporation cannot claim a dividends-received deduction.
D)All of the above are true.

Question

Quizplus · Accepted Answer

All the statements provided are true. A) The election for Sec. 179 expensing is made by the S corporation itself, not its shareholders. B) S corporations and partnerships both pass through certain items to their owners that must be separately stated. C) S corporations, unlike C corporations, cannot claim a dividends-received deduction because they pass their income directly to shareholders who then report the income on their personal tax returns.

Identify Which of the Following Statements Is True