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Level 2
posted Apr 8, 2021 8:11:25 AM

Form 1120, Schedule K, Question 16

Question on the form: During this tax year, did the corporation have an 80%-or-more change in ownership, including a change due to redemption of its own stock?

 

Situation: A C-Corp was founded in 2020, and in the same year, 80% of total common stock were issued to a solo founder.

 

Question: Would that be seen as an Ownership change?

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1 Best answer
Level 12
Apr 8, 2021 10:19:59 AM

It's not an ownership change for a corp that was just formed and issued shares.

1 Replies
Level 12
Apr 8, 2021 10:19:59 AM

It's not an ownership change for a corp that was just formed and issued shares.