Capitol buildingBy:  Amanda Wilson

Following up on my February post (found here) discussing a proposal to reduce the built-in gain period for S corporations, this proposal is one step closer to becoming a reality.  The S Corporation Modernization Act of 2015, H.R. 2788, was recently introduced in the House.  This bill, if enacted, would reduce the built-in gain period for S corporations from 10 years to 5 years.  The bill would also make IRAs eligible S corporation owners.

Obviously, there is a long way to go, but the introduction of this bill is a solid first step.

The text of H.R. 2788 can be found here.