C Corp., on a calendar year basis, elected to be taxed as a S Corp. effective with the
2006 year. Can this election be revoked before the end of the year, and revert back to
a C Corp.?
What happened was a client, single stockholder owner/employee of a C corp.
wanted to convert to a S Corp. Explained to her about the built in gain if disposed
of with in the ten yr period. Plus other things going along with an S Corp.
She said definitely she was not going to dispose of the business within the next
10 yrs. and that this is definitely what she wanted to do.
Okay, applied for the conversion.
Now she is in the process of selling the business and when I asked why, she replied
that there is no way she wanted to keep running the business for 10 yrs. She wants
out.
The corporation owns the building and land, which it continue to own after the sale.
Just the equipment and customer list etc. is being sold.
The corporation will find someone to lease the building & land.
Any ideas on this arrangement will be appreciated.
Thanks to all of you.
2006 year. Can this election be revoked before the end of the year, and revert back to
a C Corp.?
What happened was a client, single stockholder owner/employee of a C corp.
wanted to convert to a S Corp. Explained to her about the built in gain if disposed
of with in the ten yr period. Plus other things going along with an S Corp.
She said definitely she was not going to dispose of the business within the next
10 yrs. and that this is definitely what she wanted to do.
Okay, applied for the conversion.
Now she is in the process of selling the business and when I asked why, she replied
that there is no way she wanted to keep running the business for 10 yrs. She wants
out.
The corporation owns the building and land, which it continue to own after the sale.
Just the equipment and customer list etc. is being sold.
The corporation will find someone to lease the building & land.
Any ideas on this arrangement will be appreciated.
Thanks to all of you.
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