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.
