S Corporation Investment Act of 1995

[AI summary unavailable — showing source text] S Corporation Investment Act of 1995 - Amends the Internal Revenue Code to permit small business corporations to have not more than 40 (currently, not more than 35) shareholders, treating members of a family (currently, a husband and wife) as one shareholder. Terminates a small business corporation's election to be an S corporation when passive investment income exceeds 40 (currently, 25) percent of gross receipts for three consecutive years and other requirements are met. Imposes a tax when an S corporation has C earnings and profits and has gross receipts more than 40 (currently, 25) percent of which are passive investment income. Allows S corporations to elect to deduct payments to a reinvestment reserve.…