[Congressional Bills 104th Congress]
[From the U.S. Government Publishing Office]
[H.R. 928 Introduced in House (IH)]







104th CONGRESS
  1st Session
                                H. R. 928

     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

                           February 14, 1995

 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 (i) as subsection (j) and by inserting after subsection (h) 
the following new subsection:
    ``(i) 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.
    (c) If refund or credit of any overpayment of tax resulting from 
the application of subsection (a) is prevented at any time before the 
close of the 1-year period beginning on the date of the enactment of 
this Act by the operation of any law or rule of law (including res 
judicata), refund or credit of such overpayment (to the extent 
attributable to the application of subsection (a)) may, nevertheless, 
be made or allowed if claim therefor is filed before the close of such 
1-year period.
                                 <all>