S Corp with publicly traded stocks

[pedz]

I just started my tax return for my S corp using Turbo Tax Business.  I've done this for years -- perhaps incorrectly.  One of the first question is about "Entities Owned".  For the past couple of years, the S corp has owned publicly traded stock in a portfolio held by Fidelity.  How should I answer the question if the corporation "ownership interest in the following entities" -- one of them being Domestic and Foreign Corporations?

[DaveF1006 · Accepted solution]

Unless you have a significant stake in the ownership of these entities, the answer will be "no". Unless your ownership control exceeds the following, you would answer 'no" to entities owned.

• Owns 20% or more of the total stock of another corporation directly.
• Owns 50% or more of the total stock of another corporation directly or indirectly (through "constructive ownership").

If you own foreign stocks (like Toyota or a European ETF) within your Fidelity account, you still answer "No" to the ownership question.