built-in gains - The S Corporation Association

Reps. Reichert & Kind Introduce Pro-S Corporation Bills

Yesterday, Congressmen Dave Reichert (R-WA) and Ron Kind (D-WI) introduced HR 4454 and HR 4453 to make permanent two tax provisions that are important to the S corporation community.

The first bill provides a permanent BIG tax fix by locking in the recognition period for the built-in gains tax at five years. The provision was included in Chairman Camp’s tax reform draft and was discussed earlier this week in a Ways & Means Committee hearing that included S-Corp ally Jim Redpath as one of the witnesses. The latter bill, H.R. 4453, makes permanent the basis adjustment for charitable giving by …

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admin2019-02-01T20:05:24+00:00April 11, 2014|

Built-In Gains Relief Passes the House, Headed to President!

Good news for investment and S corporations! The House yesterday adopted a five-year holding period for built-in gains as part of a larger small business tax bill; the temporary one-year provision would take effect in 2011. The bill now heads to the President and should be signed into law on Monday. As BNA reported:

The House voted 237-187 Sept. 23 to pass a small business bill (H.R. 5297) that includes $12 billion in tax cuts. The legislation includes a one-year extension of the 50 percent bonus depreciation provision created in the American Recovery and Reinvestment Act (Pub. L. No. 111-5), an …

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admin2019-02-04T15:47:03+00:00September 24, 2010|

Payroll Tax Hikes Back On The Agenda

Last week, the S corporation community was put on high alert when we received word that an S corporation payroll tax increase similar to the provision from the old Rangel Mother bill (H.R. 3970) was being discussed as an offset to the extender package. The “Mother” provision (see Sec. 1211) would apply payroll taxes to all the service-related income of active shareholders of S corporations primarily engaged in service businesses. While we anticipate that the language of any new provision will differ somewhat from its 2007 predecessor, the general concept remains the same. As CongressDaily …

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admin2019-02-06T17:21:00+00:00April 27, 2010|

Welcome to 2010!

Dear S-CORP Member:

As we begin a new year and gear-up for all the hopes and challenges that 2010 will bring, I wanted to take a moment to thank you for your support and highlight the efforts and priorities of your S-CORP team.

2009 started off with a bang when we successfully secured temporary relief from the built-in gains (BIG) tax as part of the economic stimulus package adopted in February. With the enactment of that bill, firms that converted to S corporation status or existing S corporations that acquired …

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admin2019-02-06T17:21:55+00:00January 13, 2010|

Congress Reaches Deal on Stimulus

Sometimes, Congress meets a deadline. Six weeks ago, congressional leadership and the new Obama Administration had set out the Presidents’ Day recess as the deadline for getting the economic stimulus package to the President’s desk.

With the House’s vote on final passage today and the Senate expected to consider the bill as early as this evening, all indications are they’ll make it. Here’s a quick summary of the $789 billion package as outlined by the conferees:

$301 billion in family and business tax relief (down from $350 billion in the Senate bill).
$70 billion in renewable and energy efficiency provisions.
$140 billion in higher …

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admin2019-02-06T17:22:35+00:00February 13, 2009|