H.R. 2788

Referred to Committee

S Corporation Modernization Act of 2015

Introduced 6/16/2015•114th Congress•House

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Latest Action

Referred to the House Committee on Ways and Means.

6/16/2015 • House

Summary

S Corporation Modernization Act of 2015

Amends the Internal Revenue Code to revise the tax treatment of S corporations by: (1) permanently reducing from 10 to 5 years the period during which S corporation built-in gains are subject to tax, (2) repealing mandatory termination of S corporation elections for excessive passive investment income, (3) allowing S corporations to increase passive investment income from 25 to 60% without incurring additional tax, (4) allowing nonresident aliens to be potential current beneficiaries of an electing small business trust (ESBT), (5) allowing individual retirement accounts to be S corporation shareholders, (6) allowing ESBTs to claim expanded charitable tax deductions, and (7) making permanent the rule requiring a basis adjustment to stock of an S corporation making charitable contributions of property.

Introduced in House • 6/16/2015

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Topics & Subjects

Policy Area: Taxation

Accounting and auditingBusiness investment and capitalCapital gains taxCharitable contributionsCorporate finance and managementEmployee benefits and pensionsIncome tax deductionsIncome tax exclusionSecuritiesSmall businessTax administration and collection, taxpayers