SmokinBob
Level 2
11-11-2020
12:36 PM
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an s corp was bought by a partnership. I and the attorney who did the sale think the s corp loss its s corp status due to the sale; what do you think?
if so, i will do a short year s corp return and then a c corp return using fiscal year; any thoughts?
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sjrcpa
Level 15
11-11-2020
02:10 PM
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S corp status terminated when sold to Partnership. A partnership is not an eligible S shareholder.
Yes you will have a short year S corp return, followed by a c corp return.
Not so sure about the C having a fiscal year. Research the rules on permitted tax year/accounting period.
The more I know the more I don’t know.
