The recognition period for the built- in gains tax extends for how many years after the S election takes effect?

Question

Quizplus · Accepted Answer

The recognition period for the built-in gains tax extends for 10 years after the S election takes effect. This means that if the S corporation has a net unrealized built-in gain at the time of the S election, and sells assets within 10 years of the election, it may be subject to a corporate level built-in gains tax on the appreciation that existed at the time of the election.

The Recognition Period for the Built- in Gains Tax Extends