S. 1498 (Introduced in Senate) — Small Business Tax Fairness Act

1. Short title

This Act may be cited as the “Small Business Tax Fairness Act”.

2. Extension of temporary exclusion of 100 percent of gain on certain small business stock

(a)

In general— Paragraph (4) of section 1202(a) of the Internal Revenue Code of 1986 is amended—

(1)

by striking “January 1, 2014” and inserting “January 1, 2015”, and

(2)

by striking “and 2013” in the heading and inserting “2013, and 2014”.

(b)

Effective date— The amendments made by this section shall apply to stock acquired after December 31, 2013.

3. Temporary increase in deduction for start-up expenditures

(a)

In general— Paragraph (3) of section 195(b) of the Internal Revenue Code of 1986 is amended—

(1)

by inserting “, 2013, or 2014” after “2010”, and

(2)

by inserting “2013, or 2014” after “2010” in the heading.

(b)

Effective date— The amendments made by this section shall apply to taxable years beginning after December 31, 2012.

4. Extension of reduction in S-corporation recognition period for built-in gains tax

(a)

In general— Subparagraph (C) of section 1374(d)(7) of the Internal Revenue Code of 1986 is amended—

(1)

by striking “2012 or 2013” and inserting “2012, 2013, or 2014”, and

(2)

by striking “2012 and 2013” in the heading and inserting “2012, 2013, and 2014”.

(b)

Effective date— The amendments made by this section shall apply to taxable years beginning after December 31, 2013.

5. Deduction for health insurance costs in computing self-employment taxes in 2013

(a)

In general— Paragraph (4) of section 162(l) of the Internal Revenue Code of 1986 is amended by striking “beginning before January 1, 2010” and all that follows and inserting “beginning—

“(A) before January 1, 2010,

“(B) after December 31, 2010, and before January 1, 2013, or

“(C) after December 31, 2013.”

(b)

Effective date— The amendment made by this section shall apply to taxable years beginning after December 31, 2012.

6. Extension of increased expensing limitations and treatment of certain real property as section 179 property

(a)

In general—

(1)

Dollar limitation— Section 179(b)(1) of the Internal Revenue Code of 1986 is amended—

(A)

by striking “or 2013” in subparagraph (B) and inserting “2013, or 2014”, and

(B)

by striking “2013” in subparagraph (C) and inserting “2014”.

(2)

Reduction in limitation— Section 179(b)(2) of such Code is amended—

(A)

by striking “or 2013” in subparagraph (B) and inserting “2013, or 2014”, and

(B)

by striking “2013” in subparagraph (C) and inserting “2014”.

(b)

Computer software— Section 179(d)(1)(A)(ii) of the Internal Revenue Code of 1986 is amended by striking “2014” and inserting “2015”.

(c)

Election— Section 179(c)(2) of the Internal Revenue Code of 1986 is amended by striking “2014” and inserting “2015”.

(d)

Special rules for treatment of qualified real property—

(1)

In general— Section 179(f)(1) of the Internal Revenue Code of 1986 is amended by striking “or 2013” and inserting “2013, or 2014”.

(2)

Carryover limitation—

(A)

In general— Section 179(f)(4) of such Code is amended by striking “2013” each place it appears and inserting “2014”.

(B)

Conforming amendment— Subparagraph (C) of section 179(f)(4) of such Code is amended by striking “2011 and 2012” in the heading and inserting “2011, 2012, and 2013”.

(e)