Several elections are available to an S corporation or its shareholders that can affect the basis adjustments caused by distributions and other events.
4 S Corp Elections that Affect Basis
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Several elections are available to an S corporation or its shareholders that can affect the basis adjustments caused by distributions and other events.
Electing S corporation status continues to be a popular entity choice, combining the liability protection of a corporation with many of the tax benefits of a partnership.
The right entity choice can make a difference in the tax bill you owe for your business. There are plenty of potentially expensive tax problems that you should assess before making the decision to convert from a C corporation to an S corporation.