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H.R. 892

S Corporation Modernization Act of 2013

S Corporation Modernization Act of 2013 - 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 (IRAs) 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.

Referred to the House Committee on Ways and Means.

Rep. Reichert, David G. [R-WA-8](R-WA)Sponsor
6 cosponsors3 D3 R
6cosponsors1committees3actions3related bills11subjects
  • Introduced in HouseFeb 28, 2013
  1. IntroReferralH11100

    Referred to the House Committee on Ways and Means.

  2. IntroReferralIntro-H

    Introduced in House

  3. IntroReferral1000

    Introduced in House

S Corporation Modernization Act of 2013 — Informed