NASSAUSUFFOLK

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  • 1.  s corp ditsributions

    Bronze Most Valuable Member
    Posted 05-16-2022 06:05 PM
    If S corp shareholders sell their stock in the middle of tax year and they had already taken distributions during the year and the new shareholders dont take any distributions subsequent to the stock sale will this be considered an uneven distribution and possibly revoke the S election.

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    Bruce Berkowitz
    BRUCE BERKOWITZ, CPA PC
    Rockville Centre NY
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  • 2.  RE: s corp ditsributions

    Platinum Most Valuable Member
    Posted 05-16-2022 06:29 PM

    I do not know exactly,  §1377

    But there is an election to close your books on the date of the sales.

    See §1377. 

     

    My guess would be that it should not affect it, but I am not Barnett and other sages here.

     

    I am curious.

     

     




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