Summary: H.R.5754 — 114th Congress (2015-2016)All Information (Except Text)

There is one summary for H.R.5754. Bill summaries are authored by CRS.

Shown Here:
Introduced in House (07/13/2016)

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.