Today, the House passed H.R. 636, America's Small Business Tax Relief Act. One provision of this bill would make permanent rules regarding basis adjustments to stock of S corporations making charitable contributions of property. The bill provides that for charitable contributions of property, the basis of an S corporation shareholder’s stock is reduced by the pro-rata share of the adjusted basis of the contributed property rather than the shareholder’s pro rata share of the fair market value of the property.
From press reports, it is unclear when the Senate will take up the bill.