There is no limit on the amount of passive investment income that an S corporation can receive during the year.

Name: There is no limit on the amount of passive investment income that an S corporation can receive during the year.
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Question

Quizplus · Accepted Answer

S corporations are subject to limits on passive investment income. If an S corporation has accumulated earnings and profits from when it was a C corporation, it may face tax consequences if passive income exceeds 25% of gross receipts for three consecutive years.

There Is No Limit on the Amount of Passive Investment