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Business Law

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Business Law

Business Structuring Aspects of the PATH Act

By Steven B. Gorin, JD | Thompson Coburn LLP

The Protecting Americans from Tax Hikes Act of 2015 (the “PATH Act”) was enacted on December 15, 2015. Extensive legislation, the PATH Act permanently reduced the built-in gains recognition period from 10 years to 5 years for C corporations making an S election. It also made permanent the exclusion of gain on the sale of certain C corporation stock originally issued to the seller. This article discusses business restructuring in light of the PATH Act.

Download this article to review the following:

  • The impact of the legislation on existing C corporations contemplating an S election.
  • The legislation’s permanent exclusion of gain on certain C corporation stock.
  • The author's conclusion that despite the implications of the PATH Act, the partnership remains a recommended form of business entity.


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