Summary: H.R.5643 — 116th Congress (2019-2020)All Information (Except Text)

There is one summary for H.R.5643. Bill summaries are authored by CRS.

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Introduced in House (01/16/2020)

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.