AN S CORPORATION COULD HAVE INVOLUNTARY TERMINATION WHEN CONSIDERING THE PASSIVE INVESTMENT RULES IF WHICH OF THE FOLLOWING IS TRUE

ANY OF THE INCOME GENERATED BY THE S CORPORATION IS FROM THE SALE OF INVENTORY

IN THE FIRST YEAR THAT IT INCORPORATED IT MAKES AN S CORPORATION ELECTION

THE INCOME OF THE S CORPORATION IS DERIVED FROM RENTAL INCOME AND THE S CORPORATION PROVIDES SERVICES TO THE TENANT IN ADDITION TO THE RENTED PROPERTY

THE S CORPORATION HAS C CORPORATION EARNINGS AND PROFITS AND MORE THAN 25% OF ITS GROSS RECEIPTSFOR 3 CONSECUTIVE YEARS FROM PASSIVE INVESTMENT INCOME