A bill to amend the Internal Revenue Code of 1986 to expand S corporation eligibility for banks, and for other purposes.
Small Business and Financial Institutions Tax Relief Act of 1998 - Amends the Internal Revenue Code to permit S corporation eligible shareholders to include individual retirement accounts.
(Sec. 3) Excludes investment securities income held by a bank from passive income limits for purposes of S status termination.
(Sec. 4) Increases the number of eligible S corporation shareholders.
(Sec. 5) States that stock held by a bank director as required by banking regulations (director qualifying stock) shall not be considered a disqualifying second class of S corporation stock.
(Sec. 6) Directs the Secretary of the Treasury to modify a certain Regulation to permit an S corporation bank to charge certain bad debt deductions over a related bad debt reserve recapture period.
(Sec. 7) Includes all banks within the three-year deduction preference rule.
Referred to the House Committee on Ways and Means.
Introduced in Senate
Sponsor introductory remarks on measure. (CR S8920)
Read twice and referred to the Committee on Finance.
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