GiftLaw Pro, our charitable tax reference service, features detailed information on gift and estate planning strategies. It includes links to relevant Internal Revenue code sections, regulations, rulings, cases and more.

1. An S corporation may convert to a C corporation.

True False

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

True False

3. C corporations do not pay tax on the corporate level.

True False

4. Charitable remainder trusts may own C corporation stock.

True False

5. Charitable remainder trusts may own S corporation stock.

True False

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

True False

7. 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

8. 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

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

True False

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

True False

Basic Quiz - 4.14.6 Conversion to C Corporation