An enterprise may not be a Subchapter S corporation if it owns more than ________ of the stock of a subsidiary corporation.

Question

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According to the regulations of the Internal Revenue Service (IRS), an enterprise may not be a Subchapter S corporation if it owns more than 80% of the stock of a subsidiary corporation. This is because if an S corporation owns more than 80% of the stock of another corporation, it is regarded as a "controlled group of corporations." and these corporations may face certain restrictions on their ability to use the tax benefits of being an S corporation.

An Enterprise May Not Be a Subchapter S Corporation If