[Congressional Bills 105th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4596 Introduced in House (IH)]







105th CONGRESS
  2d Session
                                H. R. 4596

  To amend the Internal Revenue Code of 1986 to provide that certain 
 farming-related section 1231 gains and losses shall not be taken into 
 account in determining whether a taxpayer is eligible for the earned 
                             income credit.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                           September 17, 1998

   Mr. Smith of Michigan (for himself and Mr. Thune) 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 that certain 
 farming-related section 1231 gains and losses shall not be taken into 
 account in determining whether a taxpayer is eligible for the earned 
                             income credit.

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

SECTION 1. CERTAIN FARMING-RELATED SECTION 1231 GAINS AND LOSSES NOT 
              TAKEN INTO ACCOUNT IN DETERMINING ELIGIBILITY FOR EARNED 
              INCOME CREDIT.

    (a) In General.--Subparagraph (D) of section 32(i)(2) of the 
Internal Revenue Code of 1986 (relating to denial of credit for 
individuals having excessive investment income) is amended by striking 
``, and'' and inserting ``determined without regard to gain or loss 
from the sale of--
                            ``(i) livestock described in section 
                        1231(b)(3) held for breeding or dairy purposes, 
                        and
                            ``(ii) tangible personal property described 
                        in section 1231(b) which is used in the trade 
                        or business of farming, and''.
    (b) Effective Date.--The amendment made by this section shall apply 
to taxable years beginning after December 31, 1997.
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