All glossary terms
Glossary term
Built-In Gain (BIG) Tax
Corporate-level tax on net recognized built-in gains of a former C corporation that became an S corporation.
Related terms
2
Jurisdictions
us
Definition
Section 1374 imposes a corporate-level tax on built-in gains realized during the recognition period (currently 5 years) following an S-corp election by a former C corporation. The tax can be material on appreciated assets at conversion.
Examples
- A C-corp electing S status with appreciated real estate faces BIG tax if the property is sold within 5 years.
Related terms
Translations
ESimpuesto BIG
ZH内置利得税
DEBuilt-in-Gain-Steuer
FRimpôt sur les plus-values latentes
JABIG税
Citations
26 U.S.C. · 1374
Related citations
Computed from the cross-reference graph. Links open the related entity on this site.
This entry cites
- TermS Corporation
- TermC Corporation
Primary sources
- IRS: Built-in gains taxVerified 2026-05-20
Important disclaimer
This library is for general tax education only. Always verify filing obligations, due dates, and tax consequences against the cited primary source or with a qualified tax professional.