[Congressional Bills 103th Congress]
[From the U.S. Government Publishing Office]
[H.R. 142 Introduced in House (IH)]

103d CONGRESS
  1st Session
                                H. R. 142

     To amend the Internal Revenue Code of 1986 to provide for the 
      nonrecognition of gain on long-term real property which is 
   involuntarily converted as the result of the exercise of eminent 
 domain, without regard to whether the replacement property is similar 
                            or of like kind.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                            January 5, 1993

 Mr. Costello introduced the following bill; which was referred to the 
                      Committee on Ways and Means

_______________________________________________________________________

                                 A BILL


 
     To amend the Internal Revenue Code of 1986 to provide for the 
      nonrecognition of gain on long-term real property which is 
   involuntarily converted as the result of the exercise of eminent 
 domain, without regard to whether the replacement property is similar 
                            or of like kind.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. NONRECOGNITION TREATMENT FOR CERTAIN REAL PROPERTY 
              INVOLUNTARILY CONVERTED AS RESULT OF EXERCISE OF EMINENT 
              DOMAIN.

    (a) In General.--Section 1033 of the Internal Revenue Code of 1986 
(relating to involuntary conversions) is amended by redesignating 
subsection (h) as subsection (i), and by inserting after subsection (g) 
the following new subsection:
    ``(h) Condemnation of Real Property Held for at Least 10 Years.--
For purposes of subsection (a), if real property held by the taxpayer 
for at least 10 years is (as the result of its seizure, requisition, or 
condemnation, or threat or imminence thereof) compulsorily or 
involuntarily converted, any other property shall (at the election of 
the taxpayer) be treated as property similar or related in service or 
use to the property so converted.''
    (b) Effective Date.--The amendments made by this section shall 
apply to dispositions of converted property occurring on or after 
October 1, 1991.

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