Description of the S-Corporation Fix
As of January 1, 2010:
- The "S-corp fix" has expired. S-corporation shareholders will no longer be able to deduct full fair market value for charitable donations of appreciated property, but will rather be limited to their basis in that property. Given the long holding periods of many farm properties, this change could severely limit the ability for S-corporation shareholders to deduct the full value of donated land or easements. A one-year extension of the "S-corp fix" was included in the House "extenders" package and we're hopeful it will be extended, along with the easement incentive, in early 2010.
Click here for the full January 7th alert explaining what else expired at the end of 2009.