### Question
Can you define what applicable date means?


### Answer
**Applicable date** is defined as the following in *26 U.S.C. § 1361*:

> 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**

