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

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One of your clients is considering electing S status. Texas, Inc., is a six- year-old manufacturing company with two equal shareholders, both of whom paid $30,000 for their stock. Going into 2021, Texas holds a $110,000 NOL carryforward. Estimated income is $40,000 for 2021 and $25,000 for each of the next three years. Should Texas make an S election for 2021? Why or why not?

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South-Western Federal Taxation 2022 Corporations, Partnerships, Estates And Trusts

ISBN: 9780357519240

45th Edition

Authors: William A. Raabe, James C. Young, Annette Nellen, William H. Hoffman

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Question Posted: May 14, 2023 04:39 AM

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

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Texas Inc should remain a C corporation for 2021 and possibly for the nex...View the full answer

South-Western Federal Taxation 2022 Corporations, Partnerships, Estates And Trusts

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