What is LIFO recapture for an S Corporation?
When converting from a C corporation to an S corporation, and that C corporation had previously recognized its inventory using the LIFO (last in, first out) method, it must include its excess of FIFO (first in, first out) over its LIFO inventory in the C corporation’s final tax return before its conversion to S status.
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What is the tax on passive investment income for an S Corporation?
S corporations will be subject to income taxes at the entity level and the shareholder level on the lesser of net income or excess passive investment income assuming the following exist: A) The S corporation has accumulated C corporation earnings and profits from the time period prior to electing S status (period of existence as […]