Question

Which of the following is true concerning S corporation share? A.- A trust eligible to be an election amall business trusr can heold corporation shares only if the beneficiaries timely elect to do so. B.- S corporation shares held by trust making a 645 election to be combined with the decendent's estate will cause the S election to be terminated. C.- A trust established by a decent's by a decendent's will can hold S corporation shares for a period of two years from the date shares are terminanting the S election. D.- S corporation shares held after the death of the initial beneficiary of a Qualifying Subcharter S trust, unless the successor income beneficiary consents to the election within 75 days ,will cause the termiation of the S election.

Answer 1

Answer:

From the given data we need to find the true concerning S corporation share.

Solution:

Trust set up by a decedent's will can hold S Corporation shares for a time of two years from the date shares are exchanged to the trust by the decendent's will, without end the S decision.

So Option (C).- A trust established by a decent's by a decendent's will can hold S corporation shares for a period of two years from the date shares are terminanting the S election. is Correct Answer.