[Congressional Bills 108th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4603 Introduced in House (IH)]






108th CONGRESS
  2d Session
                                H. R. 4603

     To amend the Internal Revenue Code of 1986 to provide for the 
 nonrecognition of gain on real property held by individuals or small 
   businesses which is involuntarily converted as the result of the 
exercise of eminent domain, without regard to whether such property is 
                               replaced.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             June 17, 2004

  Mr. Filner 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 for the 
 nonrecognition of gain on real property held by individuals or small 
   businesses which is involuntarily converted as the result of the 
exercise of eminent domain, without regard to whether such property is 
                               replaced.

    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 ``Eminent Domain Relief for the Little 
Guy Act''.

SEC. 2. NONRECOGNITION TREATMENT FOR REAL PROPERTY HELD BY INDIVIDUALS 
              OR SMALL BUSINESSES WHICH IS INVOLUNTARILY CONVERTED AS A 
              RESULT OF EXERCISE OF EMINENT DOMAIN.

    (a) In General.--Section 1033 of the Internal Revenue Code of 1986 
(relating to involuntary conversions) is amended by adding at the end 
the following new subsection:
    ``(k) Condemnation of Real Property Held by Individuals and Small 
Businesses.--
            ``(1) In general.--If real property held by the taxpayer is 
        (as the result of its seizure, requisition, or condemnation, or 
        threat or imminence thereof) compulsorily or involuntary 
        converted, at the election of the taxpayer (in such form and 
        manner as the Secretary may prescribe)--
                    ``(A) no gain shall be recognized, and
                    ``(B) subsections (a) and (b) shall not apply with 
                respect to such conversion.
            ``(2) Not applicable to certain large businesses.--
        Paragraph (1) shall not apply in the case of a partnership or 
        corporation unless such partnership or corporation meets the 
        gross receipts test of section 448(c) for the taxable year in 
        which the disposition of the converted property occurs.''.
    (b) Effective Date.--The amendment made by this section shall apply 
to dispositions of converted property occurring after December 31, 
2003.
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