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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.

Not pro-rate.


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


Partnerships: Some are obvious organizational costs, dpreciation methods, accounting methods, tax year, inventory methods,

but what about these
installment sales
section 179
involuntary conversion

All of those are partnership as well, foreign tax is individual

Suprising, section 179 and involuntary conversion particularly threw me