[Congressional Bills 113th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4453 Reported in House (RH)]

                                                 Union Calendar No. 317
113th CONGRESS
  2d Session
                                H. R. 4453

                          [Report No. 113-429]

   To amend the Internal Revenue Code of 1986 to make permanent the 
    reduced recognition period for built-in gains of S corporations.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             April 10, 2014

Mr. Reichert (for himself and Mr. Kind) introduced the following bill; 
         which was referred to the Committee on Ways and Means

                              May 2, 2014

                      Additional sponsor: Mr. Reed

                              May 2, 2014

  Reported with an amendment, committed to the Committee of the Whole 
       House on the State of the Union, and ordered to be printed
 [Strike out all after the enacting clause and insert the part printed 
                               in italic]


_______________________________________________________________________

                                 A BILL


 
   To amend the Internal Revenue Code of 1986 to make permanent the 
    reduced recognition period for built-in gains of S corporations.


 


    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

<DELETED>SECTION 1. REDUCED RECOGNITION PERIOD FOR BUILT-IN GAINS OF S 
              CORPORATIONS MADE PERMANENT.</DELETED>

<DELETED>    (a) In General.--Paragraph (7) of section 1374(d) of the 
Internal Revenue Code of 1986 is amended to read as follows:</DELETED>
        <DELETED>    ``(7) Recognition period.--</DELETED>
                <DELETED>    ``(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'.</DELETED>
                <DELETED>    ``(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.''.</DELETED>
<DELETED>    (b) Effective Date.--The amendment made by this section 
shall apply to taxable years beginning after December 31, 
2013.</DELETED>

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Permanent S Corporation Built-in 
Gains Recognition Period Act of 2014''.

SEC. 2. REDUCED RECOGNITION PERIOD FOR BUILT-IN GAINS OF S CORPORATIONS 
              MADE PERMANENT.

    (a) In General.--Paragraph (7) of section 1374(d) of the Internal 
Revenue Code of 1986 is amended to read as follows:
            ``(7) Recognition period.--
                    ``(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'.
                    ``(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.''.
    (b) Effective Date.--The amendment made by this section shall apply 
to taxable years beginning after December 31, 2013.
                                                 Union Calendar No. 317

113th CONGRESS

  2d Session

                               H. R. 4453

                          [Report No. 113-429]

_______________________________________________________________________

                                 A BILL

   To amend the Internal Revenue Code of 1986 to make permanent the 
    reduced recognition period for built-in gains of S corporations.

_______________________________________________________________________

                              May 2, 2014

  Reported with an amendment, committed to the Committee of the Whole 
       House on the State of the Union, and ordered to be printed