S Corporation Permanent Tax Relief Act of 2014

Bill: 113-hr-4453
Sponsor: full_name: Rep. Reichert, David G. [R-WA-8]
Introduced: 2014-04-10
Policy area: Taxation
Subjects: Accounting and auditing

Business investment and capital

Capital gains tax

Securities

Small business

Tax administration and collection, taxpayers
Latest action: action_date: 2014-06-17
text: Read the second time. Placed on Senate Legislative Calendar under General Orders. Calendar No. 433.

Summaries:
action_date: 2014-04-10
action_desc: Introduced in House
text: <p>Amends the Internal Revenue Code to reduce from 10 to 5 years the period during which the built-in gains of an S corporation are subject to tax and to make such reduction permanent. </p>

action_date: 2014-05-02
action_desc: Reported to House with amendment(s)
text: <p>Permanent S Corporation Built-in Gains Recognition Period Act of 2014 <em>-</em> Amends the Internal Revenue Code to reduce from 10 to 5 years the period during which the built-in gains of an S corporation are subject to tax and to make such reduction permanent. </p>

action_date: 2014-06-12
action_desc: Passed House amended
text: <p>S Corporation Permanent Tax Relief Act of 2014 - Amends the Internal Revenue Code, with respect to the taxation of S corporations, to make permanent: (1) the reduction of the period (10 to 5 years) during which the built-in gains of such corporations are subject to tax, and (2) the rule requiring an adjustment to the basis of an&nbsp;shareholder's stock in an S corporation that makes tax deductible contributions of appreciated property.&nbsp;</p> <p>Prohibits the entry of the budgetary effects of this Act on any PAYGO (Pay As You Go) scorecard.</p>

tv_txt: I 113th CONGRESS 2d Session H. R. 4453 IN THE HOUSE OF REPRESENTATIVES April 10, 2014 Mr. Reichert (for himself and Mr. Kind ) introduced the following bill; which was referred to the Committee on Ways and Means A BILL To amend the Internal Revenue Code of 1986 to make permanent the reduced recognition period for built-in gains of S corporations.

1. Reduced recognition period for built-in gains of S corporations made permanent (a) In general Paragraph (7) of section 1374(d) of the Internal Revenue Code of 1986 is amended to read as follows: (7) Recognition period (A) In general The term recognition period means the 5-year period beginning with the 1st day of the 1st taxable year for which the corporation was an S corporation. For purposes of applying this section to any amount includible in income by reason of distributions to shareholders pursuant to section 593(e), the preceding sentence shall be applied without regard to the phrase 5-year . (B) Installment sales If an S corporation sells an asset and reports the income from the sale using the installment method under section 453, the treatment of all payments received shall be governed by the provisions of this paragraph applicable to the taxable year in which such sale was made. . (b) Effective date The amendment made by this section shall apply to taxable years beginning after December 31, 2013.

tv_txt: IB Union Calendar No. 317 113th CONGRESS 2d Session H. R. 4453 [Report No. 113–429] IN THE HOUSE OF REPRESENTATIVES April 10, 2014 Mr. Reichert (for himself and Mr. Kind ) introduced the following bill; which was referred to the Committee on Ways and Means May 2, 2014 Additional sponsor: Mr. Reed May 2, 2014 Reported with an amendment, committed to the Committee of the Whole House on the State of the Union, and ordered to be printed Strike out all after the enacting clause and insert the part printed in italic A BILL To amend the Internal Revenue Code of 1986 to make permanent the reduced recognition period for built-in gains of S corporations.

1. Reduced recognition period for built-in gains of S corporations made permanent (a) In general Paragraph (7) of section 1374(d) of the Internal Revenue Code of 1986 is amended to read as follows: (7) Recognition period (A) In general The term recognition period means the 5-year period beginning with the 1st day of the 1st taxable year for which the corporation was an S corporation. For purposes of applying this section to any amount includible in income by reason of distributions to shareholders pursuant to section 593(e), the preceding sentence shall be applied without regard to the phrase 5-year . (B) Installment sales If an S corporation sells an asset and reports the income from the sale using the installment method under section 453, the treatment of all payments received shall be governed by the provisions of this paragraph applicable to the taxable year in which such sale was made. . (b) Effective date The amendment made by this section shall apply to taxable years beginning after December 31, 2013.

1. Short title This Act may be cited as the Permanent S Corporation Built-in Gains Recognition Period Act of 2014 . 2. Reduced recognition period for built-in gains of S corporations made permanent (a) In general Paragraph (7) of section 1374(d) of the Internal Revenue Code of 1986 is amended to read as follows: (7) Recognition period (A) In general The term recognition period means the 5-year period beginning with the 1st day of the 1st taxable year for which the corporation was an S corporation. For purposes of applying this section to any amount includible in income by reason of distributions to shareholders pursuant to section 593(e), the preceding sentence shall be applied without regard to the phrase 5-year . (B) Installment sales If an S corporation sells an asset and reports the income from the sale using the installment method under section 453, the treatment of all payments received shall be governed by the provisions of this paragraph applicable to the taxable year in which such sale was made. . (b) Effective date The amendment made by this section shall apply to taxable years beginning after December 31, 2013.

May 2, 2014 Reported with an amendment, committed to the Committee of the Whole House on the State of the Union, and ordered to be printed

tv_txt: IB 113th CONGRESS 2d Session H. R. 4453 IN THE HOUSE OF REPRESENTATIVES AN ACT To amend the Internal Revenue Code of 1986 to make permanent the reduced recognition period for built-in gains of S corporations.

1. Short title This Act may be cited as the S Corporation Permanent Tax Relief Act of 2014 . 2. Reduced recognition period for built-in gains of S corporations made permanent (a) In general Paragraph (7) of section 1374(d) of the Internal Revenue Code of 1986 is amended to read as follows: (7) Recognition period (A) In general The term recognition period means the 5-year period beginning with the 1st day of the 1st taxable year for which the corporation was an S corporation. For purposes of applying this section to any amount includible in income by reason of distributions to shareholders pursuant to section 593(e), the preceding sentence shall be applied without regard to the phrase 5-year . (B) Installment sales If an S corporation sells an asset and reports the income from the sale using the installment method under section 453, the treatment of all payments received shall be governed by the provisions of this paragraph applicable to the taxable year in which such sale was made. . (b) Effective date The amendment made by this section shall apply to taxable years beginning after December 31, 2013. 3. Permanent rule regarding basis adjustment to stock of S corporations making charitable contributions of property (a) In general Section 1367(a)(2) of the Internal Revenue Code of 1986 is amended by striking the last sentence. (b) Effective date The amendment made by this section shall apply to contributions made in taxable years beginning after December 31, 2013. 4. Budgetary effects (a) Statutory Pay-As-You-Go Scorecards The budgetary effects of this Act shall not be entered on either PAYGO scorecard maintained pursuant to section 4(d) of the Statutory Pay-As-You-Go Act of 2010. (b) Senate PAYGO Scorecards The budgetary effects of this Act shall not be entered on any PAYGO scorecard maintained for purposes of section 201 of S. Con. Res. 21 (110th Congress).

Passed the House of Representatives June 12, 2014. Karen L. Haas, Clerk.

tv_txt: II Calendar No. 433 113th CONGRESS 2d Session H. R. 4453 IN THE SENATE OF THE UNITED STATES June 16, 2014 Received; read the first time June 17, 2014 Read the second time and placed on the calendar AN ACT To amend the Internal Revenue Code of 1986 to make permanent the reduced recognition period for built-in gains of S corporations.

1. Short title This Act may be cited as the S Corporation Permanent Tax Relief Act of 2014 . 2. Reduced recognition period for built-in gains of S corporations made permanent (a) In general Paragraph (7) of section 1374(d) of the Internal Revenue Code of 1986 is amended to read as follows: (7) Recognition period (A) In general The term recognition period means the 5-year period beginning with the 1st day of the 1st taxable year for which the corporation was an S corporation. For purposes of applying this section to any amount includible in income by reason of distributions to shareholders pursuant to section 593(e), the preceding sentence shall be applied without regard to the phrase 5-year . (B) Installment sales If an S corporation sells an asset and reports the income from the sale using the installment method under section 453, the treatment of all payments received shall be governed by the provisions of this paragraph applicable to the taxable year in which such sale was made. . (b) Effective date The amendment made by this section shall apply to taxable years beginning after December 31, 2013. 3. Permanent rule regarding basis adjustment to stock of S corporations making charitable contributions of property (a) In general Section 1367(a)(2) of the Internal Revenue Code of 1986 is amended by striking the last sentence. (b) Effective date The amendment made by this section shall apply to contributions made in taxable years beginning after December 31, 2013. 4. Budgetary effects (a) Statutory Pay-As-You-Go Scorecards The budgetary effects of this Act shall not be entered on either PAYGO scorecard maintained pursuant to section 4(d) of the Statutory Pay-As-You-Go Act of 2010. (b) Senate PAYGO Scorecards The budgetary effects of this Act shall not be entered on any PAYGO scorecard maintained for purposes of section 201 of S. Con. Res. 21 (110th Congress).

Passed the House of Representatives June 12, 2014. Karen L. Haas, Clerk

June 17, 2014 Read the second time and placed on the calendar