[Congressional Bills 104th Congress]
[From the U.S. Government Publishing Office]
[S. 1100 Introduced in Senate (IS)]







104th CONGRESS
  1st Session
                                S. 1100

To amend the Internal Revenue Code of 1986 to provide for the deduction 
       of partnership investment expenses under the minimum tax.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

               August 1 (legislative day, July 10), 1995

 Mr. Moynihan (for himself, Mr. Hatch, Mr. Baucus, Mr. Bingaman, Mrs. 
 Boxer, Mr. Breaux, Mr. Cochran, Mr. D'Amato, Mr. Dodd, Mr. Grassley, 
Mr. Kyl, Ms. Moseley-Braun, Mr. Pryor, and Mr. Simpson) introduced the 
 following bill; which was read twice and referred to the Committee on 
                                Finance

_______________________________________________________________________

                                 A BILL


 
To amend the Internal Revenue Code of 1986 to provide for the deduction 
       of partnership investment expenses under the minimum tax.
    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. TREATMENT OF PARTNERSHIP INVESTMENT EXPENSES UNDER MINIMUM 
              TAX.

    (a) General Rule.--Subparagraph (A) of section 56(b)(1) of the 
Internal Revenue Code of 1986 (relating to limitation on deductions) is 
amended to read as follows:
                    ``(A) Disallowance of certain deductions.--
                            ``(i) In general.--No deduction shall be 
                        allowed--
                                    ``(I) for any miscellaneous 
                                itemized deduction (as defined in 
                                section 67(b)), or
                                    ``(II) for any taxes described in 
                                paragraph (1), (2), or (3) of section 
                                164(a).
                            ``(ii) Treatment of partnership investment 
                        expenses.--Subclause (I) of clause (i) shall 
                        not apply to the taxpayer's distributive share 
                        of the expenses described in section 212 of any 
                        partnership; except that the aggregate amount 
                        allowed as a deduction by reason of this 
                        sentence shall not exceed the lesser of (I) the 
                        aggregate adjusted investment income of the 
                        taxpayer from partnerships, or (II) the excess 
                        of the aggregate of the taxpayer's distributive 
                        shares of such expenses over 2 percent of 
                        adjusted gross income. For purposes of the 
                        preceding sentence, the term `adjusted 
                        investment income' means investment income (as 
                        defined in section 163(d)(4)(B) without regard 
                        to clause (ii)(II) or clause (iii)) reduced by 
                        investment interest (as defined in section 
                        163(d)(3)).
                            ``(iii) Treatment of certain taxes.--
                        Subclause (II) of clause (i) shall not apply to 
                        any amount allowable in computing adjusted 
                        gross income.''
    (b) Effective Date.--The amendment made by subsection (a) shall 
apply to taxable years beginning after December 31, 1994.
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