[Congressional Bills 104th Congress]
[From the U.S. Government Publishing Office]
[H.R. 831 Introduced in House (IH)]







104th CONGRESS
  1st Session
                                H. R. 831

 To amend the Internal Revenue Code of 1986 to permanently extend the 
deduction for the health insurance costs of self-employed individuals, 
to repeal the provision permitting nonrecognition of gain on sales and 
     exchanges effectuating policies of the Federal Communications 
                  Commission, and for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                            February 6, 1995

 Mr. Archer (for himself, Mr. Matsui, Mr. Thomas, and Mrs. Johnson of 
 Connecticut) 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 permanently extend the 
deduction for the health insurance costs of self-employed individuals, 
to repeal the provision permitting nonrecognition of gain on sales and 
     exchanges effectuating policies of the Federal Communications 
                  Commission, and for other purposes.

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

SECTION 1. PERMANENT EXTENSION OF DEDUCTION FOR HEALTH INSURANCE COSTS 
              OF SELF-EMPLOYED INDIVIDUALS.

    (a) In General.--Subsection (l) of section 162 of the Internal 
Revenue Code of 1986 (relating to special rules for health insurance 
costs of self-employed individuals) is amended by striking paragraph 
(6).
    (b) Effective Date.--The amendment made by subsection (a) shall 
apply to taxable years beginning after December 31, 1993.

SEC. 2. REPEAL OF NONRECOGNITION ON FCC CERTIFIED SALES AND EXCHANGES.

    (a) In General.--Subchapter O of chapter 1 of the Internal Revenue 
Code of 1986 is amended by striking part V (relating to changes to 
effectuate FCC policy).
    (b) Clerical Amendment.--The table of parts for such subchapter O 
is amended by striking the item relating to part V.
    (c) Effective Date.--
            (1) In general.--The amendments made by this section shall 
        apply to--
                    (A) sales and exchanges on or after January 17, 
                1995, and
                    (B) sales and exchanges before such date if the FCC 
                tax certificate with respect to such sale or exchange 
                is issued on or after such date.
            (2) Binding contracts.--
                    (A) In general.--The amendments made by this 
                section shall not apply to any sale or exchange 
                pursuant to a written contract which was binding on 
                January 16, 1995, and at all times thereafter before 
                the sale or exchange, if the FCC tax certificate with 
                respect to such sale or exchange was applied for, or 
                issued, on or before such date.
                    (B) Sales contingent on issuance of certificate.--A 
                contract shall be treated as not binding for purposes 
                of subparagraph (A) if the sale or exchange pursuant to 
                such contract, or the material terms of such contract, 
                were contingent, at any time on January 16, 1995, on 
                the issuance of an FCC tax certificate. The preceding 
                sentence shall not apply if the FCC tax certificate for 
                such sale or exchange is issued on or before January 
                16, 1995.
            (3) FCC tax certificate.--For purposes of this subsection, 
        the term ``FCC tax certificate'' means any certificate of the 
        Federal Communications Commission for the effectuation of 
        section 1071 of the Internal Revenue Code of 1986 (as in effect 
        on the day before the date of the enactment of this Act).

SEC. 3. NONRECOGNITION ON INVOLUNTARY CONVERSIONS NOT TO APPLY IF 
              REPLACEMENT PROPERTY ACQUIRED FROM RELATED PERSON.

    (a) In General.--Section 1033 of the Internal Revenue Code of 1986 
(relating to involuntary conversions) is amended by redesignating 
subsection (i) as subsection (j) and by inserting after subsection (h) 
the following new subsection:
    ``(i) Nonrecognition Not To Apply if Replacement Property Acquired 
From Related Person.--Subsection (a) shall not apply if the replacement 
property or stock acquired is acquired from a related person. For 
purposes of the preceding sentence, a person is related to another 
person if the relationship between such persons would result in a 
disallowance of losses under section 267 or 707(b).''
    (b) Effective Date.--The amendment made by subsection (a) shall 
apply to replacement property or stock acquired on or after February 6, 
1995.

SEC. 4. DENIAL OF EARNED INCOME CREDIT FOR INDIVIDUALS HAVING MORE THAN 
              $2,500 OF INTEREST AND DIVIDEND INCOME.

    (a) In General.--Paragraph (1) of section 32(c) of the Internal 
Revenue Code of 1986 (defining eligible individual) is amended by 
adding at the end the following new subparagraph:
                    ``(F) Denial of credit for individuals having more 
                than $2,500 of interest and dividend income.--The term 
                `eligible individual' shall not include any individual 
                if the aggregate interest and dividend income of the 
                taxpayer for the taxable year exceeds $2,500.''
    (b) Inflation Adjustment.--Subsection (i) of section 32 of such 
Code (relating to inflation adjustments) is amended by striking 
paragraph (2) and by inserting the following new paragraphs:
            ``(2) Interest and dividend income limitation.--In the case 
        of a taxable year beginning in a calendar year after 1996, the 
        dollar amount contained in subsection (c)(1)(F) shall be 
        increased by an amount equal to--
                    ``(A) such dollar amount, multiplied by
                    ``(B) the cost-of-living adjustment determined 
                under section 1(f)(3) for the calendar year in which 
                the taxable year begins, determined by substituting 
                `calendar year 1995' for `calendar year 1992' in 
                subparagraph (B) thereof.
            ``(3) Rounding.--If any amount as adjusted under paragraph 
        (1) or (2) is not a multiple of $10, such dollar amount shall 
        be rounded to the nearest multiple of $10.''
    (c) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 1995.
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