S Corporation Modernization Act of 2015

The S Corporation Modernization Act of 2015 proposes several updates to the tax code governing S corporations, which are typically small-to-midsized businesses that pass their income directly to shareholders to avoid double taxation. The bill would make it easier for these businesses to manage their assets by shortening the timeframe they must wait to sell property without facing high tax penalties and by increasing the amount of "passive" income, such as rents or royalties, they can earn. Additionally, the legislation expands who can invest in these companies to include non-resident aliens and individual retirement accounts (IRAs), while providing more flexibility for businesses to make and deduct charitable contributions.