What is a liquidating distribution? What is a nonliquidating distribution? Provide an example of each.
What is an inadvertent termination of an S election? How does an S corporation and its shareholders rectify an inadvertent termination? What could happen if a company fails to rectify the termination?
What events will cause an S election to terminate? What would you recommend S corporations do to plan for an orderly termination of an S election?