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Discussion:Protective s election ?

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Discussion Forum Index --> Tax Questions --> Protective s election ?


Markb29 (talk|edits) said:

12 March 2014
Discovered a corporation that purchased real estate in 2012, failed to make an S election. property under development - no income or loss to date ( no tax filing either). We really would prefer to get S election approved retroactive to 2012. Not sure how much information we will be able to put in the affidavit since CFO who handled such things passed away suddenly ( we discovered the entity going through his files).

so we will try for retroactive relief - asking for S election granted effective in October 2012 - no built in gains tax to worry about.

Can we at same time ( by 3/15/14) file "protective" S election for 2014 in case we are turned down - at least we can mitigate built in gains ( only 14 months of appreciation)?

Doug M (talk|edits) said:

12 March 2014
File the S election now under the rev proc.

If they deny retroactive relief (which I highly doubt) then you will have a valid S election effective 1-1-14 (as long as you submit prior to 3-15)

Markb29 (talk|edits) said:

12 March 2014
doug,

thanks - was not sure it worked the same way as normal ( late) elections.

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