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S Corporation passive income.

This item examines the exces snare passive income (ENPI) of s corporations. The ENPI tax is an easily view from aboveed concern with former C corporations that have chooseed S status. Under Sec. 1375(a), s corporations with accumulated earnings and profits (E&P) and snare passive investment income (PII) greater than 25% of gros receipts are subdue to an income tax. The tax is calculated by means of multiplying the ENPI by the highest corporate income tax rate. Further,


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