recognized built-in gain
Defined in 3 places of the United States Code.
The term “recognized built-in gain” means any gain recognized during the recognition period on the disposition of any asset except to the extent that the S corporation establishes that—
(A) such asset was not held by the S corporation as of the beginning of the 1st taxable year for which it was an S corporation, or
(B) such gain exceeds the excess (if any) of—
(i) the fair market value of such asset as of the beginning of such 1st taxable year, over
(ii) the adjusted basis of the asset as of such time.
Source
- 1994–present26 U.S.C. § 1374Internal Revenue Code · Tax imposed on certain built-in gains · for purposes of this section
The term “recognized built-in gain” means any gain recognized during the recognition period on the disposition of any asset except to the extent the gain corporation (or, in any case described in subsection (a)(1)(B), the acquiring corporation) establishes that—
(i) such asset was not held by the gain corporation on the acquisition date, or
(ii) such gain exceeds the excess (if any) of—
(I) the fair market value of such asset on the acquisition date, over
(II) the adjusted basis of such asset on such date.
Source
- 1994–present26 U.S.C. § 384Internal Revenue Code · Limitation on use of preacquisition losses to offset built-in gains · for purposes of this section
The term “recognized built-in gain” means any gain recognized during the recognition period on the disposition of any asset to the extent the new loss corporation establishes that—
(i) such asset was held by the old loss corporation immediately before the change date, and
(ii) such gain does not exceed the excess of—
(I) the fair market value of such asset on the change date, over
(II) the adjusted basis of such asset on such date.
Source
- 1994–present26 U.S.C. § 382Internal Revenue Code · Limitation on net operating loss carryforwards and certain built-in losses following ownership change · for purposes of this section