Question: Which statement is incorrect? S corporation status allows shareholders to realize tax benefits from corporate losses immediately. Shareholder-level tax on corporate profits can be eliminated

Which statement is incorrect?

S corporation status allows shareholders to realize tax benefits from corporate losses immediately.

Shareholder-level tax on corporate profits can be eliminated by a step-up in the basis of the stock upon the shareholders death.

Less than 50% of corporations make the S election.

An S corporation resembles an LLC for Federal income tax purposes.

None of the above

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