S-Corp Stock Ownership

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    Topic
  • #185029
    Anonymous
    Inactive

    Which of the following statements concerning the eligibility requirements for S Corps is NOT correct?

    A. An S Corp is permitted to own 100% of the stock of a C corp.

    B. An S Corp is permited to own 75% of the stock of another S Corp

    C. An S Corp is permitted to be a partner in a partnership.

    D. A partnership is not permitted to be a shareholder of an S corp.

    A. The eligibility requirements restrict S corporation shareholders to individuals (other than nonresident aliens), estates, and certain trusts. Partnerships and C corporations are not permitted to own stock in an S corporation. However, an S corporation is permitted to be a partner in a partnership, and may own any percentage of stock of a C corporation, as well as own 100% of the stock of a qualified subchapter S subsidiary.


    So an S Corp can own 100% of the stock in another S Corp but it cant own 75%?

Viewing 8 replies - 1 through 8 (of 8 total)
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  • #545869
    calicpa
    Participant

    REG question

    I asked the same exact question. Yes exactly. has to be all or nothing.

    BEC - 84, 4/6/13
    AUD - 77, 5/28/13
    REG - 83, 4/12/14
    FAR - 83, 10/3/13

    Ethics - 90% 4/24/13

    150 unit education requirement met!
    Work experience met!

    #545878
    calicpa
    Participant

    REG question

    I asked the same exact question. Yes exactly. has to be all or nothing.

    BEC - 84, 4/6/13
    AUD - 77, 5/28/13
    REG - 83, 4/12/14
    FAR - 83, 10/3/13

    Ethics - 90% 4/24/13

    150 unit education requirement met!
    Work experience met!

    #545871
    Anonymous
    Inactive

    Thanks, and I see you're almost done. Hope you'll get a passing score on the next wave of release!

    #545880
    Anonymous
    Inactive

    Thanks, and I see you're almost done. Hope you'll get a passing score on the next wave of release!

    #545873
    calicpa
    Participant

    thanks!

    BEC - 84, 4/6/13
    AUD - 77, 5/28/13
    REG - 83, 4/12/14
    FAR - 83, 10/3/13

    Ethics - 90% 4/24/13

    150 unit education requirement met!
    Work experience met!

    #545882
    calicpa
    Participant

    thanks!

    BEC - 84, 4/6/13
    AUD - 77, 5/28/13
    REG - 83, 4/12/14
    FAR - 83, 10/3/13

    Ethics - 90% 4/24/13

    150 unit education requirement met!
    Work experience met!

    #545875
    h0wdyus
    Member

    The question asks “IS NOT CORRECT ” so we need to find the WRONG answer out of the 4 choices.

    The wrong Answer is ‘A' because a S corp can own upto ( permitted to) 100% in another S corp. The answer A is wrong because S corp is permitted to own UPTO 100% and not LIMITED to 75%. So a S Corp can own 75% of S corp and still be eligible. The Wrong answer is suggesting that you CANNOT own more than 75% of another S corp, while that is not true, you can own upto 100%.

    my 2 cents.

    FAR - 81 29th Aug 2013
    AUD - 84
    REG - 82
    BEC - 89 29th Aug 2014
    Using Yager

    FROM NJ

    #545884
    h0wdyus
    Member

    The question asks “IS NOT CORRECT ” so we need to find the WRONG answer out of the 4 choices.

    The wrong Answer is ‘A' because a S corp can own upto ( permitted to) 100% in another S corp. The answer A is wrong because S corp is permitted to own UPTO 100% and not LIMITED to 75%. So a S Corp can own 75% of S corp and still be eligible. The Wrong answer is suggesting that you CANNOT own more than 75% of another S corp, while that is not true, you can own upto 100%.

    my 2 cents.

    FAR - 81 29th Aug 2013
    AUD - 84
    REG - 82
    BEC - 89 29th Aug 2014
    Using Yager

    FROM NJ

Viewing 8 replies - 1 through 8 (of 8 total)
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