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S 3181 114th Congress Senate Taxation Capital gains tax Charitable contributions Corporate finance and management Employee benefits and pensions Financial services and investments Income tax deductions Income tax rates Sales and excise taxes Securities Small business Tax administration and collection, taxpayers

S Corporation Modernization Act of 2016

Introduced: July 13, 2016 Introduced by: Thune, John Republican · South Dakota See on congress.gov
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 Everywhere this bill has been 2 steps
Introduced
In committee
Reported out
Passed House
Passed Senate
To President
Became law
Jul 13, 2016
Read twice and referred to the Committee on Finance.
Jul 13, 2016
Introduced in Senate
 Plain-English summary Congressional Research Service

S Corporation Modernization Act of 2016

This bill amends the Internal Revenue Code, with respect to the tax treatment of S corporations, to:

  • allow a nonresident alien to be a qualifying beneficiary of an electing small business trust (ESBT), which is a type of trust that is permitted to hold shares in an S corporation;
  • allow S corporations to increase passive investment income from 25% to 60% without incurring additional taxes;
  • eliminate a provision terminating the S corporation status of corporations with excessive passive income for three consecutive years;
  • allow any S corporation bank to have individual retirement account shareholders;
  • allow ESBTs to claim expanded tax deductions for charitable contributions; and
  • allow an adjustment to the basis of an S corporation's assets upon the death of a shareholder, in the form of a 15-year amortization deduction.
What's happening now July 13, 2016

Read twice and referred to the Committee on Finance.

 Committees of jurisdiction 1