Question

Certain adjustments and recordings periods have been changed in cases where an S corporation revokes its S Corporation status. Eligible entities must meet all of the following criteria Except:

1. At the date of revocation, be compromised of all the same owners on December 22,2017, and their ownership shares are in identical porportion oneach of these dates

2.On December 22,2017, and for two years following, have revoked their S corporation status

3.Have been an S Corp on December,31,2016

4.Have been an S corporation on December,21,2017

Answer 1

Solution: Have been an S corporation on December,21,2017

Explanation: The S corporation will be eligible for termination is any C corporation which

(1) on the day before the date of enactment is an S corporation;

(2) the tenure of the two-year period starting on the enactment date revokes its S corporation election; and

(3) on the date the S corporation election would be revoked the owners are the in identical proportions and are same owners as was on the enactment date