4.14.6 Basic Quiz -- Conversion to C Corporation

An S corporation may convert to a C corporation.

True False

S corporations generally do not pay tax on the corporate level.

True False

C corporations do not pay tax on the corporate level.

True False

Charitable remainder trusts may own C corporation stock.

True False

Charitable remainder trusts may own S corporation stock.

True False

A tax accountant or attorney should be consulted prior to converting an S corporation to a C corporation.

True False

An S corporation that converts to a C corporation has an "S corporation taint" for 5 years during which it is still subject to some of the rules applicable to S corporations.

True False

If an S corporation converts to a C corporation, a shareholder may donate his or her stock to charity and receive a fair market value deduction.

True False

A C corporation can make direct charitable gifts of its assets to charity or a charitable remainder trust.

True False

Income earned by a C corporation and distributed to a charitable remainder trust is unrelated business income.