An S election is terminated if the S corporation has passive investment income in excess of 20 percent of gross receipts for three consecutive years.

Name: An S election is terminated if the S corporation has passive investment income in excess of 20 percent of gross receipts for three consecutive years.
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Question

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An S election is terminated if the S corporation has passive investment income in excess of 25 percent of gross receipts for three consecutive years, not 20 percent.

An S Election Is Terminated If the S Corporation Has