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.
Short title
This Act may be cited as the Permanent S Corporation Built-in Gain Recognition Period Act of 2015
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Reduced recognition period for built-in gains of S corporations made permanent
In general
Paragraph (7) of section 1374(d) of the Internal Revenue Code of 1986 is amended to read as follows:
Recognition period
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
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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.
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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