Homework Help-Taxition
Barry Potter and Winnie Weasley are considering making an S election on March 1, 2010, for their C corporation, Omniocular. However, first they want to consider the implications of the following information:
Winnie is a U.S. citizen and resident.
Barry is a citizen of the United Kingdom, but a resident of the United States.
Barry and Winnie each own 50 percent of the voting power in Omniocular. However, Barry’s stock provides him with a claim on 60 percent of the Omniocular assets in liquidation.
Omniocular was formed under Arizona state law, but it plans on eventually conducting some business in Mexico.
a) Is Omniocular eligible to elect S corporation status? If so, when is the election effective?
