Built-in gains recognized fifteen years after a C corporation elects to become an S corporation are subject to the built-in gains tax.
The built-in gains recognition period is five years.

Question

Quizplus · Accepted Answer

The built-in gains recognition period is five years, not fifteen, meaning gains recognized after five years are not subject to the built-in gains tax.

Built-In Gains Recognized Fifteen Years After a C Corporation Elects