Most financial institutions are familiar with the two most common benefits of an S election:
The elimination of double taxation on the amount of current-year earnings distributed to shareholders.
The increase to stock basis for the amount of earnings not distributed to shareholders, which reduces the future capital gain on the stock.
However, there is another benefit that doesn't completely take effect until an institution has been an S corporation for 10 years. That benefit is the opportunity to obtain a higher sales price for an institution (by treating the sale as an asset sale for tax purposes) without owing any built-in gains tax (BIG tax).
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