(III) in the case of any other qualified small business, the return of tax for the taxable year, and (iii) may be revoked only with the consent of the Secretary. (B) Limitations. (i) Amount. The amount specified in any election made under this subsection shall not exceed $250,000. (ii) Number of taxable years. A person may not make an election under this subsection if such person (or any other person treated as a single taxpayer with such person under paragraph (5)(A) ) has made an election under this subsection for 5 or more preceding taxable years. (C) Special rule for partnerships and S corporations. In the case of a qualified business which is a partnership or S corporation, the election made under this subsection shall be made at the entity level. (5) Aggregation rules. (A) In general. Except as provided in subparagraph (B) , all persons or entities treated as a single taxpayer under subsection (f)(1) shall be treated as a single taxpayer for purposes of this subsection. (B) Special For purposes of this subsection and section 3111(f) - (i) each of the persons treated as a single taxpayer under subparagraph (A) may separately make the election under paragraph (1) for any taxable year, and (ii) the $250,000 amount under paragraph (4)(B)(i) shall be allocated among all persons treated as a single taxpayer under subparagraph (A) in the same manner as under subparagraph (A)(ii) or (B)(ii) of subsection (f)(1) , whichever is applicable. (6) Regulations. The Secretary shall prescribe such regulations as may be necessary to carry out the purposes of this subsection, including- (A) regulations to prevent the avoidance of the purposes of the limitations and aggregation rules under this subsection through the use of successor companies or other means, (B) regulations to minimize compliance and recordkeeping burdens under this subsection, and
(III) in the case of any other qualified small business, the return of tax for the taxable year, and (iii) may be revoked only with the consent of the Secretary. (B) Limitations. (i) Amount. The amount specified in any election made under this subsection shall not exceed $250,000. (ii) Number of taxable years. A person may not make an election under this subsection if such person (or any other person treated as a single taxpayer with such person under paragraph (5)(A) ) has made an election under this subsection for 5 or more preceding taxable years. (C) Special rule for partnerships and S corporations. In the case of a qualified business which is a partnership or S corporation, the election made under this subsection shall be made at the entity level. (5) Aggregation rules. (A) In general. Except as provided in subparagraph (B) , all persons or entities treated as a single taxpayer under subsection (f)(1) shall be treated as a single taxpayer for purposes of this subsection. (B) Special For purposes of this subsection and section 3111(f) - (i) each of the persons treated as a single taxpayer under subparagraph (A) may separately make the election under paragraph (1) for any taxable year, and (ii) the $250,000 amount under paragraph (4)(B)(i) shall be allocated among all persons treated as a single taxpayer under subparagraph (A) in the same manner as under subparagraph (A)(ii) or (B)(ii) of subsection (f)(1) , whichever is applicable. (6) Regulations. The Secretary shall prescribe such regulations as may be necessary to carry out the purposes of this subsection, including- (A) regulations to prevent the avoidance of the purposes of the limitations and aggregation rules under this subsection through the use of successor companies or other means, (B) regulations to minimize compliance and recordkeeping burdens under this subsection, and
IRC_Section_41.docx