I own a FL C Corp since 2001, but am considering to elect S Corp tax status. I have read about eventual tax consequences of appreciated property and passive income when switching from C Corp to S Corp.

In my case, my C Corp has no property or investments. It only has a) inventory for resale, b) cash at the bank and c) Accounts Receivables, mostly generated by Retained Earnings.

Question: Does the Inventory, Cash or Retained Earnings "qualify" as "appreciated property" OR "passive income". Logically, the answer would be NO, as I believe appreciated property should refer to stocks, real estate or other investments and "passive income" should mean typical income from real estate rentals, interest from bank accounts, dividends, etc...

The definitive question would be..."Will I have any tax consequence related to "appreciated property" OR "passive income by selecting the S Corp status?"

Please notice that am not selling or transfering the company, just changing the tax status from c Corp to S Corp.

Thanks!