A bill to amend the Internal Revenue Code of 1986 to make permanent the reduced recognition period for built-in gains for S corporations.

Bill: 113-s-1855
Sponsor: full_name: Sen. Cardin, Benjamin L. [D-MD]
Introduced: 2013-12-18
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: 2013-12-18
text: Read twice and referred to the Committee on Finance.

Summaries:
action_date: 2013-12-18
action_desc: Introduced in Senate
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>

tv_txt: II 113th CONGRESS 1st Session S. 1855 IN THE SENATE OF THE UNITED STATES December 18, 2013 Mr. Cardin (for himself and Mr. Roberts ) introduced the following bill; which was read twice and referred to the Committee on Finance A BILL To amend the Internal Revenue Code of 1986 to make permanent the reduced recognition period for built-in gains for S corporations.

1. Reduced recognition period for built-in gains made permanent (a) In general Paragraph (7) of section 1374(d) of the Internal Revenue Code of 1986 is amended— (1) by striking subparagraphs (A), (B), (C), and (D), (2) by redesignating subparagraph (E) as subparagraph (B), and (3) by inserting before subparagraph (B) (as so redesignated) the following new subparagraph: (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) Effective date The amendment made by this section shall apply to taxable years beginning after December 31, 2013.