H.R. 4453 — what changed
S Corporation Permanent Tax Relief Act of 2014
From Reported in House to Engrossed in House. 1 section amended and 3 added between Reported in House and Engrossed in House.
Section 1 Short title
added This Act may be cited as the “S Corporation Permanent Tax Relief Act of 2014”.
removed
In general— Paragraph (7) of section 1374(d) of the Internal Revenue Code of 1986 is amended to read as follows:
removed
“(7) Recognition period
removed
“(A) In general—The term recognition period means the 5-year period beginning with the 1st day of the 1st taxable year for which the corporation was an S corporation. For purposes of applying this section to any amount includible in income by reason of distributions to shareholders pursuant to section 593(e), the preceding sentence shall be applied without regard to the phrase “5-year”.
removed
“(B) Installment sales—If an S corporation sells an asset and reports the income from the sale using the installment method under section 453, the treatment of all payments received shall be governed by the provisions of this paragraph applicable to the taxable year in which such sale was made.”
removed
Effective date— The amendment made by this section shall apply to taxable years beginning after December 31, 2013.
Sec. 2 Reduced recognition period for built-in gains of S corporations made permanent
added
added
In general— Paragraph (7) of section 1374(d) of the Internal Revenue Code of 1986 is amended to read as follows:
added “(7) Recognition period
added “(A) In general—The term recognition period means the 5-year period beginning with the 1st day of the 1st taxable year for which the corporation was an S corporation. For purposes of applying this section to any amount includible in income by reason of distributions to shareholders pursuant to section 593(e), the preceding sentence shall be applied without regard to the phrase “5-year”.
added “(B) Installment sales—If an S corporation sells an asset and reports the income from the sale using the installment method under section 453, the treatment of all payments received shall be governed by the provisions of this paragraph applicable to the taxable year in which such sale was made.”
added
Effective date— The amendment made by this section shall apply to taxable years beginning after December 31, 2013.
Sec. 3 Permanent rule regarding basis adjustment to stock of S corporations making charitable contributions of property
added
added
In general— Section 1367(a)(2) of the Internal Revenue Code of 1986 is amended by striking the last sentence.
added
Effective date— The amendment made by this section shall apply to contributions made in taxable years beginning after December 31, 2013.
Sec. 4 Budgetary effects
added
added
Statutory Pay-As-You-Go Scorecards— The budgetary effects of this Act shall not be entered on either PAYGO scorecard maintained pursuant to section 4(d) of the Statutory Pay-As-You-Go Act of 2010.
added
Senate PAYGO Scorecards— The budgetary effects of this Act shall not be entered on any PAYGO scorecard maintained for purposes of section 201 of S. Con. Res. 21 (110th Congress).