One of your clients is considering electing S status. Texas, Inc., is a six-year-old company with two

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One of your clients is considering electing S status. Texas, Inc., is a six-year-old company with two equal shareholders, both of whom paid $30,000 for their stock. Going into 2013, Texas has a $110,000 NOL carryforward from prior years. Estimated income is $40,000 for 2013 and $25,000 for each of the next three years. Should Texas make an S election for 2013? Why or why not?
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South Western Federal Taxation 2014 Comprehensive Volume

ISBN: 9781285180922

37th Edition

Authors: William H. Hoffman, David M. Maloney, William A. Raabe, James C. Young

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