House Bill 5643
116th Congress(2019-2020)
S Corporation Modernization Act of 2020
Introduced
Introduced in House on Jan 16, 2020
Origin Chamber
House
Type
Bill
Bill
The primary form of legislative measure used to propose law. Depending on the chamber of origin, bills begin with a designation of either H.R. or S. Joint resolution is another form of legislative measure used to propose law.
Bill Number
5643
Congress
116
Policy Area
Taxation
Taxation
Primary focus of measure is all aspects of income, excise, property, inheritance, and employment taxes; tax administration and collection. Measures concerning state and local finance may fall under Economics and Public Finance policy area.
No House votes have been held for this bill.
Summary
S Corporation Modernization Act of 2020
This bill amends the Internal Revenue Code, with respect to the tax treatment of S corporations, to
- 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 in three consecutive years;
- allow any S corporation to have individual retirement accounts as shareholders; 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.
January 16, 2020
01/16/2020
Referred to the House Committee on Ways and Means.
01/16/2020
Introduced in House
Public Record
Record Updated
Feb 8, 2022 11:14:44 PM