Question

Identify which of the following statements is true.

		For C corporations that desire to be taxed like a partnership, the S corporation rules provide a practical alternative for an existing C corporation to obtain many of the tax benefits of being taxed as a partnership.
		The S corporation rules were enacted to allow small corporations to enjoy the nontax advantages of the corporate form of business without being subject to the tax disadvantage of double taxation.
		A partnership can elect to be taxed as a corporation under the check-the-box regulations. As a corporation, an S election can be made.
		All of the above are true.

Answer 1

Answer)option d All of the above are true For C corporations that desire to be taxed like a partnership, the S corporation rules provide a practical alternative for an existing C corporation to obtain many of the tax benefits of being taxed as a partnership. The S corporation rules were enacted to allow small corporations to enjoy the nontax advantages of the corporate form of business without being subject to the tax disadvantage of double taxation. A partnership can elect to be taxed as a corporation under the check-the-box regulations. As a corporation, an S election can be made