S-corporation sold its stock to two individuals. The two individuals that now own the S-corporation stock filed a Qsub election. They created a new S-Corp and showed that as the "parent" of the recently purchased S-Corporation. The purchase agreement and SBA loan show the two individuals as the purchasers of the old S-Corporation's stock. This is basically a botched 338(h)(10) election we are trying to fix.
Couple questions:
1) Can the Qsub election be easily revoked?
2) We plan to make a 336(e) election. Do we file a short year tax return for the purchased S-Corp and mark it final?
3) Does the purchased S-Corp also need to file a new S-election?