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For each of the independent situations listed: I ndicate whether the S corporation's S status would be Terminated or Not terminated as appropriate. If terminated

For each of the independent situations listed:

  • Indicate whether the S corporation's S status would be "Terminated" or "Not terminated" as appropriate.
  • If terminated explain what caused the termination in the template.

Scenarios

1

Amy owns 40 shares of Jane Corp., an S corporation. Amy is one of 100 unrelated shareholders. She sells 10 shares of her Jane stock to her sister's solely owned C corporation.

2

Mark owns 60 shares of Hello Corp., an S corporation. He is one of 100 unrelated shareholders. Mark sells 20 shares of his Hello stock to his sister's single-member LLC.

3

Billy owns 50 shares of Apple Corp., an S corporation. He is one of 100 unrelated shareholders. Billy sells 15 shares of his Apple stock to a partnership in which he is a 50 percent general partner.

4

Hank owns 60 shares of Sleepy Corp., an S corporation. He is one of 100 unrelated shareholders. Hank sells 15 shares of his Sleepy stock to his friend, a U.S. citizen who is currently living in Canada.

5

Elle owns 50 shares of Tamco Corp., an S corporation. She is one of 100 unrelated shareholders. Elle sells 10 shares of her Tamco stock to her husband, a U.S. citizen.

6

Velma owns 60 shares of Blue Corp., an S corporation. She is one of 100 unrelated shareholders. Velma sells 15 shares of her Blue stock to her former husband, a U.S. citizen.

7

Gwen owns 50 shares of ABC Corp., an S corporation. She is one of 100 unrelated shareholders. Gwen sells 10 shares of her ABC stock to her 12-year-old granddaughter.

8

Harry owns 40 shares of Hostel Corp., an S corporation. He is one of 100 unrelated shareholders. Henry sells 5 shares of his Hostel stock to his nephew, who is employed by Hostel Corp. but does not own any other stock in the organization.

9

Edith owns 40 shares of Ohio Corp., an S corporation. She is one of 100 unrelated shareholders. Edith sells 10 shares of her Ohio stock to her aunt, who is a Canadian citizen living in Quebec.

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