Any payment of such imputed tax, interest or penalty by an electing
large LLC is nondeductible.
If there is both an executor and a trustee, the trustee of the electing
trust must timely provide the executor of the related estate with all of the trust information necessary to permit the executor to file a complete, accurate and timely Form 1041 for the combined electing
trust and related estate for each taxable year during the election period [Treas.
In several instances, (8) the entity planned to file Form 8832, electing
to be treated as a corporation, and Form 2553 to be taxed as an S corporation.
When voters cast ballots in November for those leaders, they will actually be electing
a group of representatives called --
The regulations providing for the GST trust election are similar in nature to the provisions for electing
out of the automatic allocation rules for indirect skips.
Commentators asked for more options; in response, the Service said the final rules add the option of electing
out for only certain designated future transfers to a trust, or all future transfers made by the transferor to any trust, regardless of whether the trust exists at the time of the election.
out of the deemed allocation rules does not prevent a transferor from allocating his or her available GST exemption, such as when making a partial allocation on a timely filed Form 709 or by making a late allocation under Regs.
In addition, split gifts made by a spouse are now reported separately on Part 1, Gifts Subject Only to Gift Tax; Part 2, Direct Skips; or Part 3, whichever is applicable, to facilitate electing
out of the deemed-allocation rules on split gifts that are direct skips or indirect-skip transfers.
1.645-1(e)(2)(iii), the electing
trust and related estate are treated as separate shares for purposes of computing distributable net income (DNI).The final regulations discuss how to adjust the DNI of the separate shares for distributions between the shares.
If the corporation is to remain an S corporation, the stock will have to be distributed to a qualifying shareholder by the end of the two-year period, unless the trust can qualify to elect treatment as a qualified subchapter S trust or electing
small business trust.
Further, the application of an aggregate approach better served Congress' intent to prevent corporations from avoiding double taxation on built-in gain assets by electing
2002-38 lays out the automatic approval procedures for partnerships, S corporations, electing
S corporations and personal service corporations (PSCs) to change annual accounting periods.