Sec. 2014. TEMPORARY REDUCTION IN RECOGNITION PERIOD FOR BUILT-IN GAINS TAX

170 words·~1 min read·/statute-compilations/comps-9466/sec-2014

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## SEC. 2014 TEMPORARY REDUCTION IN RECOGNITION PERIOD FOR BUILT-IN GAINS TAX ###

(a)In General Subparagraph

(B)of section 1374(d)(7) of the Internal Revenue Code of 1986 is amended to read as follows: > > ##### “(B) Special rules for 2009, 2010, and 2011 > > No tax shall be imposed on the net recognized built-in gain of an S corporation— > > > ###### “(i) > > in the case of any taxable year beginning in 2009 or 2010, if the 7th taxable year in the recognition period preceded such taxable year, or > > > ###### “(ii) > > in the case of any taxable year beginning in 2011, if the 5th year in the recognition period preceded such taxable year. > > The preceding sentence shall be applied separately with respect to any asset to which paragraph

(8)applies.” > . ###

(b)Effective Date The amendment made by this section shall apply to taxable years beginning after December 31, 2010. ### PART II ENCOURAGING INVESTMENT