On December 16th, 2014 the tax extenders bill finally passed in the Senate by a 76-16 vote and is on its way to . . .
The S Corporation Permanent Tax Relief Act of 2014, which consist of HR 4453 (permanent 5-year BIG period) and HR 4454 (basis adjustment . . .
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 Finance Committee is scheduled to meet today and the amendment list just released shows there’s lots of demand for tax policy within the Committee. Over 90 amendments have been filed. Some of the amendments could have a direct effect on Subchapter S banks. Specifically, two benefits being considered are:
• A two-year extension of the shorter, five-year holding period for built in gains; and
• A two-year extension of the provision allowing the full deduction of appreciated property from an S corporation to a charity.
These provisions have long been part of S Corporation Modernization legislation championed by Senators Cardin (D-MD), Hatch (R-UT), and Roberts (R-KS). Chairman Wyden’s goal is to adopt a pared-back list of extenders through the end of next year and then use that time to develop and pass a more permanent reform of the tax code: “This bipartisan extenders package is the product of a Finance Committee that came together to provide needed certainty to the economy, protect jobs and maintain important priorities for working families,” Wyden said. “With that said, I am determined this will be the last extenders bill on my watch. It’s high time we focus on creating a new, 21st-century tax code, because the status quo is unacceptable.
By: Patrick J. Kennedy, Jr and William Sutherland
By: Patrick J. Kennedy, Jr and William Sutherland With the signing of the American Taxpayer Relief Act of 2012 (H.R. 8) S corp . . .