[Congressional Bills 105th Congress]
[From the U.S. Government Publishing Office]
[S. 1748 Introduced in Senate (IS)]







105th CONGRESS
  2d Session
                                S. 1748

To amend the Internal Revenue Code of 1986 to provide that the reduced 
 capital gains tax rates apply to long-term capital gain from property 
                 with at least a 1-year holding period.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                             March 12, 1998

Mr. Mack (for himself, Mr. Breaux, Mr. Torricelli, Mr. Lott, Mr. Hatch, 
    Mr. Murkowski, Mr. DeWine, Mr. Hagel, Mr. Kyl, Mr. Abraham, Mr. 
 Ashcroft, Mr. Cochran, and Mr. Helms) 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 that the reduced 
 capital gains tax rates apply to long-term capital gain from property 
                 with at least a 1-year holding period.

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

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Capital Gains Simplification Act of 
1998''.

SEC. 2. 1-YEAR HOLDING PERIOD FOR ANY LONG-TERM CAPITAL GAIN.

    (a) In General.--Section 1(h)(4) of the Internal Revenue Code of 
1986 (defining adjusted net capital gain) is amended by adding ``and'' 
at the end of subparagraph (B), by striking ``, and'' at the end of 
subparagraph (C) and inserting a period, and by striking subparagraph 
(D).
    (b) Conforming Amendments.--Section 1(h) of the Internal Revenue 
Code of 1986 is amended--
            (1) in paragraph (6), by striking subparagraph (A) and 
        inserting the following:
                    ``(A) In general.--The term `unrecaptured section 
                1250 gain' means the amount of long-term capital gain 
                which would be treated as ordinary income if section 
                1250(b)(1) included all depreciation and the applicable 
                percentage under section 1250(a) were 100 percent.'',
            (2) by striking paragraphs (8), (10), and (11),
            (3) in paragraph (9), by striking ``section 1202 gain, or 
        mid-term gain'' and inserting ``or section 1202 gain'',
            (4) by redesignating paragraph (9) as paragraph (8), and
            (5) by adding at the end the following:
            ``(8) Treatment of pass-thru entities.--
                    ``(A) In general.--The Secretary may prescribe such 
                regulations as are appropriate (including regulations 
                requiring reporting) to apply this subsection in the 
                case of sales and exchanges by pass-thru entities and 
                of interests in such entities.
                    ``(B) Pass-thru entity defined.--For purposes of 
                subparagraph (A), the term `pass-thru entity' means--
                            ``(i) a regulated investment company,
                            ``(ii) a real estate investment trust,
                            ``(iii) an S corporation,
                            ``(iv) a partnership,
                            ``(v) an estate or trust, and
                            ``(vi) a common trust fund.''.
    (d) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 1997.
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