net recognized built-in gain
Defined in 1 place of the United States Code.
The term “net recognized built-in gain” means, with respect to any taxable year in the recognition period, the lesser of—
(i) the amount which would be the taxable income of the S corporation for such taxable year if only recognized built-in gains and recognized built-in losses were taken into account, or
(ii) such corporation's taxable income for such taxable year (determined as provided in section 1375(b)(1)(B)).
Source
- 1994–present26 U.S.C. § 1374Internal Revenue Code · Tax imposed on certain built-in gains · for purposes of this section