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Posted

I am confused by instructions.  This entity has always been an S corp.  The shareholder passed and it went to his estate a few years ago.  This year the estate distributed to the owners wife.  Not sure how to complete the form, tax year etc.  IS the tax year beginning the date  of distribution or 1/1.  Also, my software <proseries> is populating with both the new owner and the estate as shareholders to sign even thought the estate % shows as -0-.  I can't delete it unless I override.  I don't think the estate has to sign this form.

Posted
24 minutes ago, michaelmars said:

  This entity has always been an S corp.  The shareholder passed and it went to his estate a few years ago.  This year the estate distributed to the owners wife.

Not sure why you are filing form 2553 in that situation.  Shares passed from decedent to estate to wife.

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Posted

I'm not sure either. My partner thinks it has to be filed because more than a 50% change in ownership.. I sort of agree with you that the estate is an entity that stands in place of the decedent and its a transfer from husband to wife.

Posted
7 minutes ago, michaelmars said:

the estate is an entity that stands in place of the decedent

The estate is an eligible shareholder.  There was no internal change, just a change in stock ownership.

 

11 minutes ago, michaelmars said:

My partner thinks it has to be filed because more than a 50% change in ownership

That is not a reason to file a 2553.

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