S Corporation Modernization Act of 2020 2020-01-16 Introduced in House S Corporation Modernization Act of 2020

This bill amends the Internal Revenue Code, with respect to the tax treatment of S corporations, to

  • allow S corporations to increase passive investment income from 25% to 60% without incurring additional taxes;
  • eliminate a provision terminating the S corporation status of corporations with excessive passive income in three consecutive years;
  • allow any S corporation to have individual retirement accounts as shareholders; and
  • allow an adjustment to the basis of an S corporation's assets upon the death of a shareholder, in the form of a 15-year amortization deduction.
]]> text/xml EN Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain. Congressional Research Service, Library of Congress This file contains bill summaries for federal legislation. A bill summary describes the most significant provisions of a piece of legislation and details the effects the legislative text may have on current law and federal programs. Bill summaries are authored by the Congressional Research Service (CRS) of the Library of Congress. As stated in Public Law 91-510 (2 USC 166 (d)(6)), one of the duties of CRS is "to prepare summaries and digests of bills and resolutions of a public general nature introduced in the Senate or House of Representatives". For more information, refer to the User Guide that accompanies this file.