The Built-In Gains Tax (§ 1374) Was Enacted to

The built-in gains tax (§ 1374) was enacted to

A) Ensure recognition of all gain.
B) Aid beginning corporations that elect S status by deferring the tax on built-in gains for 10 years.
C) Prevent C corporations that were planning distributions of appreciated property from avoiding double taxation by converting to S corporations before making the distributions.
D) Ensure recognition of all gains on the distribution of appreciated property purchased by the S corporation.