Sec. 127. EXTENSION OF REDUCTION IN S-CORPORATION RECOGNITION PERIOD FOR BUILT-IN GAINS TAX
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## SEC. 127 EXTENSION OF REDUCTION IN S-CORPORATION RECOGNITION PERIOD FOR BUILT-IN GAINS TAX ###
(a)In general **[**[26 U.S.C. 1374](/us/usc/t26/s1374)**]** Section 1374(d)(7) 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 **[**[26 U.S.C. 1374 note](/us/usc/t26/s1374)**]** The amendments made by this section shall apply to taxable years beginning after December 31, 2014.
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Sec. 127
EXTENSION OF REDUCTION IN S-CORPORATION RECOGNITION PERIOD FOR BUILT-IN GAINS TAX
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