Permanent S Corporation Built-in Gain Recognition Period Act of 2015

Bill: 114-hr-629
Sponsor: full_name: Rep. Reichert, David G. [R-WA-8]
Introduced: 2015-01-30
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: 2015-02-09
text: Placed on the Union Calendar, Calendar No. 9.

Summaries:
action_date: 2015-01-30
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: 2015-02-09
action_desc: Reported to House with amendment(s)
text: <p><strong>Permanent S Corporation Built-in Gain Recognition Period Act of 2015</strong></p> <p>(Sec. 2) Amends the Internal Revenue Code to reduce from 10 years 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: I 114th CONGRESS 1st Session H. R. 629 IN THE HOUSE OF REPRESENTATIVES January 30, 2015 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, 2014.

tv_txt: IB Union Calendar No. 9 114th CONGRESS 1st Session H. R. 629 [Report No. 114–15] IN THE HOUSE OF REPRESENTATIVES January 30, 2015 Mr. Reichert (for himself and Mr. Kind ) introduced the following bill; which was referred to the Committee on Ways and Means February 9, 2015 Additional sponsors: Mr. Reed and Mr. Costello of Pennsylvania February 9, 2015 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 For text of introduced bill, see copy of bill as introduced on January 30, 2015 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. Short title This Act may be cited as the Permanent S Corporation Built-in Gain Recognition Period Act of 2015 . 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, 2014.

February 9, 2015 Reported with an amendment, committed to the Committee of the Whole House on the State of the Union, and ordered to be printed