### Question
How does the law define applicable date?


### Answer
Under *26 U.S.C. § 1361*, **applicable date** is defined as:

> the latest of—



(I) the date the election under section 1362(a) is made,



(II) the earliest date that an individual described in clause (i) holds stock in the S corporation, or



(III) October 22, 2004

#### Citation:
  - *26 U.S.C. § 1361*
  - Heading: **Subtitle A-Income Taxes > CHAPTER 1-NORMAL TAXES AND SURTAXES > Subchapter S-Tax Treatment of S Corporations and Their Shareholders > PART I-IN GENERAL**

