All in the Family as a Single Shareholder of an S Corporation

Authors

Douglas A. Kahn, University of Michigan Law SchoolFollow
Jeffrey H. Kahn, Florida State University College of LawFollow
Terrence G. Perris, University of Toledo College of LawFollow

Document Type

Article

Publication Date

8-2007

Abstract

Subject to a few exceptions, a corporation that has elected to be taxed under subchapter S of chapter 1 of subtitle A of title 26 of the United States tax code is not taxed on its net income. Instead, the income, deductions, credits, and other tax items of an S corporation pass through to its shareholders on a pro rata basis. To qualify for subchapter S treatment, an electing corporation must satisfy the requirements that are set forth in section 1361, one of which is that the corporation can have no more than 100 shareholders. One aspect of that requirement is the focus of this article.

Comments

Reprinted with the permission of Tax Analysts.

Recommended Citation

Kahn, Douglas A. "All in the Family as a Single Shareholder of an S Corporation." J. H. Kahn and T. G. Perris, co-authors. Tax Notes 116 (2007): 791-4.