The recognition period for the built-in gains tax extends for how many years after the S election takes effect?
A)one year
B)three years
C)five years
D)ten years

Question

Quizplus · Accepted Answer

The recognition period for the built-in gains tax extends for ten years after the S election takes effect. This period is designed to prevent corporations from avoiding corporate-level tax on appreciated assets by electing S corporation status.

The Recognition Period for the Built-In Gains Tax Extends for How