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Should Texas make an S election

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Problem - One of your clients is considering electing S status. Texas, Inc., is a six-year-old manufacturing company with two equal shareholders, both of whom paid $30,000 for their stock. Going into 2019, Texas holds a $110,000 NOL carryforward. Estimated income is $40,000 for 2019 and $25,000 for each of the next three years. Should Texas make an S election for 2019? Why or why not?

Reference no: EM132648518

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