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H.R. 4453 (113th): S Corporation Permanent Tax Relief Act of 2014

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The text of the bill below is as of Jun 17, 2014 (Placed on Calendar in the Senate). The bill was not enacted into law.

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