Question

Helmut and Sergei own all the stock of Zappo​ Corporation, a calendarminus−year domestic corporation. On January 30 of the current​ year, Sergei sells his entire interest in the Zappo stock to Nils. All three individuals are U.S. citizens. Can an S election be made for the current​ year?

Answer 1

Yes, if Sergei will also join in the election with Helmut and Nils

Step-by-step explanation:

This is because an S election is when a company is about to become an S corporation. S corporation usually do not have to pay their taxes but pass the tax liability for their profits through to their stockholders and then, all of the profits earned by the S corporation will be taxed only once.

The S selection will happen only if the 3 are there because they have to testify and since Nils wasn't there all the time, Sergei has to testity in his place.