[Congressional Bills 105th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1672 Introduced in House (IH)]







105th CONGRESS
  1st Session
                                H. R. 1672

     To amend the Internal Revenue Code of 1986 to permit tax-free 
 distributions of property by cooperative housing corporations to its 
                 shareholders, and for other purposes.


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                    IN THE HOUSE OF REPRESENTATIVES

                              May 20, 1997

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

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                                 A BILL


 
     To amend the Internal Revenue Code of 1986 to permit tax-free 
 distributions of property by cooperative housing corporations to its 
                 shareholders, 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. TAX-FREE DISTRIBUTIONS BY COOPERATIVE HOUSING CORPORATIONS.

    (a) In General.--Subsection (e) of section 216 of the Internal 
Revenue Code of 1986 (relating to distributions by cooperative housing 
corporations) is amended to read as follows:
    ``(e) Distributions by Cooperative Housing Corporations.--Except as 
provided in regulations--
            ``(1) no gain or loss shall be recognized to a cooperative 
        housing corporation on the distribution by such corporation of 
        a dwelling unit to a stockholder in such corporation if such 
        distribution is in exchange for the stockholder's stock in such 
        corporation, and
            ``(2) no gain or loss shall be recognized to a stockholder 
        of such corporation on the transfer of such stockholder's stock 
        in an exchange described in paragraph (1).''
    (b) Effective Date.--The amendment made by this section shall apply 
to distributions after the date of the enactment of this Act.
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