A bill to amend the Internal Revenue Code of 1986 to provide for S corporation reform, and for other purposes.
S Corporation Modernization Act of 2008 - Amends the Internal Revenue Code to revise the tax treatment of S corporations by: (1) reducing from 10 to seven years the period during which S corporation built-in gains are subject to tax; (2) repealing mandatory termination of S corporation elections for excessive passive investment income; (3) allowing S corporations to increase passive investment income from 25 to 60% without incurring additional tax; (4) allowing nonresident aliens to be potential current beneficiaries of an electing small business trust (ESBT); (5) allowing individual retirement accounts (IRAs) to be S corporation shareholders; and (6) allowing ESBTs to claim expanded charitable tax deductions.
Referred to the House Committee on Ways and Means.
Placed on Senate Legislative Calendar under General Orders. Calendar No. 10.
Introduced in Senate
Sponsor introductory remarks on measure. (CR S4803)
Read twice and referred to the Committee on Finance.
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