Source: http://taxtv.com/code/00825-USCODE-2011-title26-subtitleA-chap1-subchapS-partIII-sec1374/
Timestamp: 2017-03-26 01:29:06
Document Index: 154400057

Matched Legal Cases: ['§1374', '§1374', '§1374', '§2', '§305', '§102', '§474', '§721', '§632', '§1006', '§7811', '§1601', '§12', '§2014', '§7811', '§7811', '§7811', '§7811', '§1006', '§1006', '§1006', '§1006', '§1006', '§474', '§721', '§2014', '§12', '§1374']

IRC §1374. Tax imposed on certain built-in gains - TaxTV.com
IRC §1374. Tax imposed on certain built-in gains
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(ii) such corporation’s taxable income for such taxable year (determined as provided in section 1375(b)(1)(B)).
(B) Special rules for 2009, 2010, and 2011
No tax shall be imposed on the net recognized built-in gain of an S corporation—
(C) Special rule for distributions to shareholders
For purposes of applying this section to any amount includible in income by reason of distributions to shareholders pursuant to section 593(e)—
(i) subparagraph (A) shall be applied without regard to the phrase “10-year”, and
(ii) the S corporation’s basis in such asset is determined (in whole or in part) by reference to the basis of such asset (or any other property) in the hands of a C corporation,
(Added Pub. L. 97–354, §2, Oct. 19, 1982, 96 Stat. 1683; amended Pub. L. 97–448, title III, §305(d)(3), Jan. 12, 1983, 96 Stat. 2400; Pub. L. 98–369, div. A, title I, §102(d)(1), title IV, §474(r)(27), title VII, §721(u), July 18, 1984, 98 Stat. 623, 844, 971; Pub. L. 99– 4, title VI, §632(a), Oct. 22, 1986, 100 Stat. 2275; Pub. L. 100–647, title I, §1006(f)(1)–(5)(A), Nov. 10, 1988, 102 Stat. 3403, 3404; Pub. L. 101–239, title VII, §7811(c)(4), (5)(B), (8), Dec. 19, 1989, 103 Stat. 2407, 2408; Pub. L. 105–34, title XVI, §1601(f)(5)(B), Aug. 5, 1997, 111 Stat. 1091; Pub. L. 111–5, div. B, title I, §12 (a), Feb. 17, 2009, 123 Stat. 342; Pub. L. 111–240, title II, §2014(a), Sept. 27, 2010, 124 Stat. 2556.)
1989—Subsec. (b)(3)(B). Pub. L. 101–239, §7811(c)(8), inserted at end “A similar rule shall apply in the case of the minimum tax credit under section 53 to the extent attributable to taxable years for which the corporation was a C corporation.”
Subsec. (d)(2)(A)(i). Pub. L. 101–239, §7811(c)(4), struck out “(except as provided in subsection (b)(2))” after “taxable year if”.
Subsec. (d)(5)(B). Pub. L. 101–239, §7811(c)(5)(B)(i), inserted “(determined without regard to any carryover)” after “during the recognition period”.
Subsec. (d)(5)(C). Pub. L. 101–239, §7811(c)(5)(B)(ii), substituted “which would be treated as recognized built-in gains or losses under this paragraph if such amounts were properly taken into account (or allowable as a deduction) during the recognition period” for “treated as recognized built-in gains or losses under this paragraph”.
1988—Subsec. (a). Pub. L. 100–647, §1006(f)(1), inserted “net” before “recognized”.
Subsec. (b)(1). Pub. L. 100–647, §1006(f)(2), added par. (1) and struck out former par. (1) which read as follows: “The tax imposed by subsection (a) shall be a tax computed by applying the highest rate of tax specified in section 11(b) to the lesser of—
Subsec. (b)(2). Pub. L. 100–647, §1006(f)(2), added par. (2) and struck out former par. (2) which read as follows: “Notwithstanding section 1371(b)(1), any net operating loss carryforward arising in a taxable year for which the corporation was a C corporation shall be allowed as a deduction against the lesser of the amounts referred to in subparagraph (A) or (B) of paragraph (1). For purposes of determining the amount of any such loss which may be carried to subsequent taxable years, the lesser of the amounts referred to in subparagraph (A) or (B) of paragraph (1) shall be treated as taxable income.”
Subsec. (b)(4)(B). Pub. L. 100–647, §1006(f)(3), amended subpar. (B) generally. Prior to amendment, subpar. (B) read as follows: “the lower of the amounts specified in subparagraphs (A) and (B) of paragraph (1) shall be treated as the taxable income.”
Subsec. (c)(2). Pub. L. 100–647, §1006(f)(4), substituted “net recognized built-in gain” for “recognized built-in gains” in introductory provisions and in subpar. (B).
1986—Pub. L. 99– 4 amended section generally, substituting provisions imposing tax on certain built-in gains for provisions imposing tax on certain capital gains which had declared in: subsec. (a), general rule for capital gains tax on S corporations; subsec. (b), amount of tax; subsec. (c), general rule as to exceptions from subsec. (a) in par. (1), exception as to new corporations in par. (2), provisions relating to property with substituted basis in par. (3), and treatment of certain gains of options and commodities dealers in par. (4); and subsec. (d), determination of taxable income of corporation.
1984—Subsec. (b). Pub. L. 98–369, §474(r)(27), substituted “section 34” for “section 39” in provisions following par. (2).
Subsec. (c)(2). Pub. L. 98–369, §721(u), struck out “(and any predecessor corporation)” before “has been in existence” in subpar. (A), and inserted provision that to the extent provided in regulations, an S corporation and any predecessor corporation shall be treated as 1 corporation for purposes of this paragraph and paragraph (1).
Pub. L. 111–240, title II, §2014(b), Sept. 27, 2010, 124 Stat. 2556, provided that: “The amendment made by this section [amending this section] shall apply to taxable years beginning after December 31, 2010.”
Pub. L. 111–5, div. B, title I, §12 (b), Feb. 17, 2009, 123 Stat. 342, provided that: “The amendment made by this section [amending this section] shall apply to taxable years beginning after December 31, 2008.”
Amendment by Pub. L. 99– 4 applicable to taxable years beginning after Dec. 31, 1986, but only in cases where the return for the taxable year is filed pursuant to an S election made after Dec. 31, 1986, and with provision that, in the case of any taxable year of an S corporation which begins after Dec. 31, 1986, and to which the amendments by section 632 (other than subsec. (b) thereof) of Pub. L. 99– 4 do not apply, subsec. (b)(1) of this section (as in effect on the date before Oct. 22, 1986) shall apply as if it read as follows: “an amount equal to 34 percent of the amount by which the net capital gain of the corporation for the taxable year exceeds $25,000, or”, and with other exceptions and special and transitional rules, see section 633 of Pub. L. 99– 4, as amended, set out as an Effective Date note under section 336 of this title.
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