H.R. 4453 — Introduced in House

I 113th CONGRESS 2d Session H. R. 4453 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 A BILL To amend the Internal Revenue Code of 1986 to make permanent the reduced recognition period for built-in gains of S corporations. 1. 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.