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Do payments, either direct or indirect, to a subchapter S corporation always create an increase in the taxpayer's basis? When selling their businesses, most owners of small C corporations will pay double the tax that they would have paid were they an LLC or Subchapter S corporation. In LTR 200533002, Taxpayer, a subchapter S corporation (S corporation), issued convertible preferred stock to three partnerships controlled by a venture capital fund. |
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