I 108th CONGRESS 2d Session H. R. 3776 IN THE HOUSE OF REPRESENTATIVES February 4, 2004 Mr. Lewis of Kentucky (for himself, Mrs. Blackburn, Mr. Tanner, Mr. Foley, Mr. McInnis, Mrs. Bono, Mr. Conyers, Mr. Ford, Mr. Jenkins, Mr. Duncan, Mr. Wamp, Mr. Cooper, Mr. Gordon, Mr. Davis of Tennessee, Mr. Rogers of Kentucky, and Mr. Whitfield) 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 capital gains tax treatment for certain self-created musical works.

1.

Short title

This Act may be cited as the &short-title1;.

2.

Capital gains treatment for certain self-created musical works

(a)

In general

Subsection (b) of section 1221 of the Internal Revenue Code of 1986 (relating to capital asset defined) is amended by redesignating paragraph (3) as paragraph (4) and by inserting after paragraph (2) the following new paragraph: (3)

Sale or exchange of self-created musical works

At the election of the taxpayer, paragraphs (1) and (3) of subsection (a) shall not apply with respect to any sale or exchange of musical compositions or copyrights in musical works by a taxpayer described in subsection (a)(3). . (b)

Limitation on charitable contributions

Subparagraph (A) of section 170(e)(1) of the Internal Revenue Code of 1986 is amended by inserting (determined without regard to section 1221(b)(3)) after long-term capital gain. (c)

Effective date

The amendments made by this section shall apply to taxable years beginning after the date of the enactment of this Act.