Category: Business Entities and Transactions

The Internal Revenue Service defines an S-Corp as a “corporation that elects to pass corporate income, losses, deductions, and credits through to their shareholders for federal tax purposes. Shareholders of S-Corps report the flow-through of income and losses on their personal tax returns and are assessed tax at their individual…

S corporation stock, whether owned individually or by a trust, merits special attention upon death. Congress presumably did not want a shareholder’s death to terminate an S election, so an estate of a deceased S corporation shareholder is a permitted shareholder during the period of administration. If the executor transfers…