For details, see Form 8869, Qualified Subchapter S Subsidiary Election. If the election is made, the subsidiary's assets, liabilities, and items of income, deduction, and credit generally are treated as those of the parent. See sections 1361, 1362, and 1378, and their related regulations for additional information on the above tests.Ī parent S corporation can elect to treat an eligible wholly owned subsidiary as a qualified subchapter S subsidiary. It isn’t one of the following ineligible corporations.Ī 52-53-week tax year ending with reference to a year listed above.Īny other tax year (including a 52-53-week tax year) for which the corporation (entity) establishes a business purpose.įor details on making a section 444 election or requesting a natural business, ownership, or other business purpose tax year, see the instructions for Part II.Įach shareholder consents as explained in the instructions for column K. See Regulations section 1.1361-1(l) for details. Generally, a corporation is treated as having only one class of stock if all outstanding shares of the corporation's stock confer identical rights to distribution and liquidation proceeds. It has only one class of stock (disregarding differences in voting rights). It has no nonresident alien shareholders (other than as potential current beneficiaries of an ESBT). If these elections weren’t timely made, see Rev.
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MN REV FILE EXTENSION 2016 HOW TO
For guidance on how to convert a QSST to an ESBT, see Regulations section 1.1361-1(j)(12). For information about the section 1361(e)(3) election to be an electing small business trust (ESBT), see Regulations section 1.1361-1(m). Its only shareholders are individuals, estates, exempt organizations described in section 401(a) or 501(c)(3), or certain trusts described in section 1361(c)(2)(A).įor information about the section 1361(d)(2) election to be a qualified subchapter S trust (QSST), see the instructions for Part III. All others are treated as separate shareholders. For additional situations in which certain entities will be treated as members of a family, see Regulations section 1.1361-1(e)(3)(ii).
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You can also treat all members of a family (as defined in section 1361(c)(1)(B)) and their estates as one shareholder for this test. You can treat an individual and his or her spouse (and their estates) as one shareholder for this test. If Form 2553 isn’t timely filed, see Relief for Late Elections, later. It is (a) a domestic corporation, or (b) a domestic entity eligible to elect to be treated as a corporation, that timely files Form 2553 and meets all the other tests listed below.