S Corporation Permanent Tax Relief Act of 2014

S Corporation Permanent Tax Relief Act of 2014 - Amends the Internal Revenue Code, with respect to the taxation of S corporations, to make permanent: (1) the reduction of the period (10 to 5 years) during which the built-in gains of such corporations are subject to tax, and (2) the rule requiring an adjustment to the basis of an shareholder's stock in an S corporation that makes tax deductible contributions of appreciated property. 

Prohibits the entry of the budgetary effects of this Act on any PAYGO (Pay As You Go) scorecard.

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

113th CONGRESS
  2d Session
                                H. R. 4453

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


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                    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

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                                 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,

SECTION 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.
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