4.14.2 Basic Quiz -- Charity as Sub S Shareholder

Sec. 501(c)(3) charities may own S corporation stock.

True False

All S corporation income is unrelated business income ("UBI") when received by a charity.

True False

A charity may sell S corporation stock tax free in the same way it may sell C corporation stock tax free.

True False

All C corporation income is unrelated business income ("UBI") when received by a charity.

True False

It may be more difficult to sell S corporation stock than C corporation stock.

True False

Private foundations may not own S corporation shares.

True False

If an entity that is not permitted to own S corporation stock purchases S corporation stock, the S corporation will lose its "S" status and will become a C corporation.

True False

A corporation becomes an S corporation simply by having the right number and type of shareholders.

True False

Other corporations may own S corporation stock.

True False

Charitable remainder trusts may own S corporation stock.