capital - The S Corporation Association

S Corp Champions Push BIG Relief

As Congress moves forward on the stimulus bill, the S Corporation Association continues to push Built-In Gains tax relief as a vital part of the package. If the economy is suffering from a lack of capital, BIG relief can help S corporations access capital currently locked-in by punitive tax rates.

As part of that effort, S-Corp allies Senators Lincoln (D-AR), Hatch (R-UT), Cardin (D-MD), and Snowe (R-ME) sent Senate leadership a letter today advocating for including BIG relief in the stimulus package. Their letter states:

Our proposal, as included in the S Corporation Modernization …

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admin2019-02-06T17:22:36+00:00October 29, 2008|

Bailout Update

The Treasury Department announced over the weekend that it would infuse $250 billion directly into the banking system, starting with approximately $125 billion targeted at nine major institutions including Goldman Sachs and Citigroup.

Combined with the coordinated efforts of central banks around the world, the announcement appears to have successfully staunched the record erosion of equity prices over the past two weeks. Interest rates and other indicators are moving in a positive direction as well, indicating that the credit markets may finally loosen up.

If you are keeping track, the latest move by Treasury is just the last in a remarkable and …

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admin2019-02-06T17:22:36+00:00October 14, 2008|

Bailout Takes Center Stage

Our friends at the Treasury spent the weekend working primarily with the House Financial Services Committee to refine the Administration’s emergency plan to purchase hundreds of billions of dollars worth of mortgage backed securities.

According to Bloomberg, the scope of the proposal has expanded to include other troubled assets, including credit card debts and car loans. Members of Congress are also weighing in, seeking to add additional provisions such as limits on executive compensation and the cramdown of loan balances under bankruptcy.

The goal of these talks is to get …

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admin2019-02-06T18:06:07+00:00September 22, 2008|

S-Corp Supports Small Business Tax Modernization Act

More good news for S Corps! Congresswoman Nydia VelC!zquez, Chairwoman of the House Small Business Committee, introduced legislation last week “the Small Business Tax Modernization Act of 2008” that includes many provisions with the potential to benefit the S corporation community.

Of particular interest to S corporations, the bill would allow nonresident aliens to invest in S corporations. This restriction, developed half a century ago, prohibits S corporations from partnering with investors in other countries. Lifting this restriction would enhance an S corporation’s ability to access new sources of capital, which will in turn help generate new investment and job creation …

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admin2019-02-06T18:06:07+00:00July 29, 2008|

Broad Business Coalition Supports BIG Relief

There are increased reports in the media about a potential stimulus package to be considered when Congress returns in September (here and here). If Congress does consider another stimulus package and wants to target help at the small business community, it should act to increase the ability of S corporations to access the capital they already own.

A broad and powerful coalition of 14 trade associations is asking Congress to do just that. A letter sent …

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admin2019-02-06T18:06:07+00:00July 23, 2008|