• Skip to primary navigation
  • Skip to main content
  • Skip to footer

Subchapter S Bank Association

Join Login
  • Twitter
  • Linkedin
  • YouTube
  • About Us
    • Patrick J. Kennedy, Jr.
  • Register Now for the 2021 Conference!
  • Newsletter
  • Events
  • FAQs
  • Membership
  • Contact Us

March 30, 2011

How are “members of a family” counted towards the total number of S corporation shareholders?

In addition to raising the number of permissible shareholders from 75 to 100, the American Jobs Creation Act also introduced the term “members of a family” to the world of Subchapter S taxation. The 2004 legislation had the effect of treating individual shareholders (including their spouses or former spouses) who were “members of a family” as a single shareholder for Subchapter S purposes. Which shareholders qualified as members of a family was determined by counting backwards up to six generations from the youngest generation of shareholders, as of a specified date, to determine what is called a “common ancestor.” All of those shareholders who were lineal descendants of this common ancestor qualified as members of a family.

  • Facebook
  • Twitter
  • Pinterest
  • LinkedIn
The American Association of Bank Directors logo

Footer

Subchapter S Bank Association

112 East Pecan St., Suite 2810
San Antonio, TX 78205
Phone: 210-228-9500
Fax: 210-228-0781

Share On

Follow On

Proudly sponsored by the
AABD logo
Click here to learn more or to join the AABD
  • About Us
  • Register Now for the 2021 Conference!
  • Newsletter
  • FAQs
  • Join
  • Contact Us
© 2023. Subchapter S Bank Association. All Rights Reserved.