Helmut and Sergei own all the stock of Zappo Corporation, a calendarminus-year domestic corporation. On January 30 of the current year, Sergei sells his entire interest in the Zappo stock to Nils. All three individuals are U. S. citizens. Can an S election be made for the current year?

Question

Social Studies

Abdiel Foster

23 January, 09:12

Helmut and Sergei own all the stock of Zappo Corporation, a calendarminus-year domestic corporation. On January 30 of the current year, Sergei sells his entire interest in the Zappo stock to Nils. All three individuals are U. S. citizens. Can an S election be made for the current year?

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Answers (1)

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Journey Chen · Answer 1

Yes, if Sergei will also join in the election with Helmut and Nils

Explanation:

This is because an S election is when a company is about to become an S corporation. S corporation usually do not have to pay their taxes but pass the tax liability for their profits through to their stockholders and then, all of the profits earned by the S corporation will be taxed only once.

The S selection will happen only if the 3 are there because they have to testify and since Nils wasn't there all the time, Sergei has to testity in his place.