Pending a court's order to terminate
the contract and if there are no applicable suspension rights, the parties may be required to continue to perform their contractual obligations.
It provides that a taxpayer may terminate
a previously made election out at any time, by attaching a termination statement to his or her gift tax return, filed by the due date of the return for the calendar year in which is made the first transfer to which the election out is not to apply.
338(h)(10) election was made, the original S election did not terminate
when the stock was purchased.
The IRS ruled that because the LLC is disregarded as an entity separate from its owner, the fact that the LLC owns the S corporation would not terminate
the S election.
If a QSST election is not made, the S election technically terminates
, because the trust is an ineligible shareholder.
another partner owns an interest in the partnership, so that the partnership does not terminate
If S stock is transferred to a nonqualifying shareholder, the S election terminates
These facts also raise this question: Is income properly reportable by the shareholder in the year in which the S election terminates
or in the year in which the S corporation's normal year ends?