Flashcards in Elections Deck (6):
Elections pertains to use of short year by S corps.
If the S corp terminates and becomes a C corp can elect to have all income accounted for by C corp. If not, then must pro-rate to S.
S corp terminates because it becomes C Corp, is the election to prorate or not prorate income to S.
What is a section 444 election.
It's when an S corp elects (needs IRS consent section 1378a) to use a fiscal instead of a calendar.
Must make a payment under section 444. after 1986
What is a 1362(b) election and what form is used.
Small business to be taxed under subchapter S
R and. D expenses options
elect to deduct the first year you have them (but you have to keep doing this)
you can write off over a 10 year period beginning with the tax year first incurred
you can amortize over 60 months beginning with the first month you receive benefits