Which of the following statements regarding federal income tax is true? A. An entity may elect to change its classification for federal income tax purposes every four years. B. An insurance company is automatically classified as a partnership for federal income tax purposes. C. A limited liability company may have the fiscal year as its taxable Year or may follow partnership rules in selecting it's tax year end. D. Partnerships and S corporations can adopt adopt a year end that produces income deferral for up to 6 months
Which of the following statements regarding federal income tax is true? A. An entity may elect to change its classification for federal income tax purposes every four years. B. An insurance company is automatically classified as a partnership for federal income tax purposes. C. A limited liability company may have the fiscal year as its taxable Year or may follow partnership rules in selecting it's tax year end. D. Partnerships and S corporations can adopt adopt a year end that produces income deferral for up to 6 months
SWFT Essntl Tax Individ/Bus Entities 2020
23rd Edition
ISBN:9780357391266
Author:Nellen
Publisher:Nellen
Chapter12: Corporations: Organization, Capital Structure, And Operating Rules
Section: Chapter Questions
Problem 2BD
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Which of the following statements regarding federal income tax is true?
A. An entity may elect to change its classification for federal income tax purposes every four years.
B. An insurance company is automatically classified as a
C. A limited liability company may have the fiscal year as its taxable Year or may follow partnership rules in selecting it's tax year end.
D. Partnerships and S corporations can adopt adopt a year end that produces income deferral for up to 6 months.
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