passive investment rules - The S Corporation Association

Senate S Corp Modernization Act Introduced!

Good news for the S corporation community! Senators Blanche Lincoln (D-AR), Orrin Hatch (R-UT), Gordon Smith (R-OR) and Ben Cardin (D-MD) introduced the S Corporation Modernization Act of 2008, S. 3063, last evening.

The introduction of this legislation helps us move forward on our list of priority reforms, including critical relief from the built-in gains and passive investment rules while expanding the list of potential S corporation shareholders to allow for direct investment from foreign sources and retirement vehicles.

As S-Corp readers know, Senator Lincoln has been a long-time champion of our issues. In her statement introducing the bill, she made clear …

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Small Business Tax Package Agreement

Late Friday evening, House and Senate tax writers announced they had come to an agreement on the Small Business Tax Package to accompany an increase in the minimum wage. While this package is destined to join the current Iraq Supplemental and get vetoed by the President, the expectation is that the package will then be included in the subsequent supplement spending bill that should get signed into law. As BNA reports:

The package, the culmination of several weeks of impasse in reconciling vastly different House and Senate packages followed by a short spurt of negotiations, will be included in the supplemental …

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