Permanently Extend 5-Year Recognition Period for Built-In Gains

Tagged under: built in gains, 2011

May 15, 2014

Senator John Thune (R-SD) has filed an amendment making permanent two key S corporation reforms. Joined by Senators Ben Cardin (D-MD) and Pat Roberts (R-KS), the Thune amendment would make permanent the shorter, five-year recognition period for built-in gains as well as an improved basis adjustment for charitable contributions by S corporations. The text of the amendment is identical to the text of H.R. 4453 and H.R. 4454, legislation sponsored by Representatives Dave Reichert (R-WA) and Ron Kind (D-WI) that passed the Ways & Means Committee earlier this month and are due to be considered by the House of Representatives in coming weeks.

The Subchapter S Bank Association wrote in support of the Thune amendment along with several other organizations respectfully asking that Congress support the Thune amendment and permanently extend the 5-year recognition period for built-in gains." The Thune/Cardin amendment would make changes to the tax extenders package currently being considered by the Senate. 


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