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Here's the scenario: Business was incorporated in 2017 but…

Hi! So here's...

Hi! So here's the scenario: Business was incorporated in 2017 but hasn't yet begun business operations. I've found out through my research and various phone calls with the IRS that since the business has no activity in 2017, it is acceptable to file a C-Corp tax return for 2017, elect to be an S-Corp effective as of 1.1.18, and start filing an S-Corp tax return starting with tax year 2018. When I go to fill out part L of the 2553 S-Corp election, what should I put as the date shares were acquired?...Date of incorporation, Date of S-Corp Election effective date, or the date when business actually begins? Thoughts?

Accountant's Assistant: The Accountant will know how to help. Is there anything else the Accountant should be aware of?

I think that's it but if she needs more info, I'll be happy to answer.

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Answered in 2 minutes by:
3/14/2018
Carter McBride
Carter McBride, Certified Public Accountant (CPA)
Category: Tax
Satisfied Customers: 1,276
Experience: Adjunct Professor
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Hey! I'm Carter, I'm a CPA and can help you out. You are going to use the date you formed the corporation in 2017.
Let me know if you need anything else. If not, please leave a rating. Thanks!
Carter McBride
Carter McBride, Certified Public Accountant (CPA)
Category: Tax
Satisfied Customers: 1,276
Experience: Adjunct Professor
Verified
Carter McBride and 87 other Tax Specialists are ready to help you
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Customer reply replied 4 months ago
Thank you! And that won't cause any tax consequences if I say the shares were acquired in 2017 and then roll over into an S-Corp in 2018?
Customer reply replied 4 months ago
Sorry-I rated you and then it "completed" the request when I still had an open question...
Nope, no tax consequences for that.
Ask Your Own Tax Question
Customer reply replied 4 months ago
Thanks! Have an excellent day!
You too!
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