[Congressional Bills 109th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2476 Introduced in House (IH)]






109th CONGRESS
  1st Session
                                H. R. 2476

To amend the Internal Revenue Code of 1986 to exclude from gross income 
gain on the sale of certain residential leased-fee interests to holders 
                        of the leasehold rights.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                              May 19, 2005

 Mr. Abercrombie 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 exclude from gross income 
gain on the sale of certain residential leased-fee interests to holders 
                        of the leasehold rights.

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

SECTION 1. EXCLUSION OF GAIN FROM SALES OF CERTAIN RESIDENTIAL LEASED-
              FEE INTERESTS TO HOLDERS OF THE LEASEHOLD RIGHTS.

    (a) General Rule.--Part III of subchapter B of chapter 1 of the 
Internal Revenue Code of 1986 (relating to items specifically excluded 
from gross income) is amended by inserting after section 139A the 
following new section:

``SEC. 139B. SALES OF CERTAIN RESIDENTIAL LEASED-FEE INTERESTS TO 
              HOLDERS OF THE LEASEHOLD RIGHTS.

    ``(a) General Rule.--In the case of a fee simple owner-lessor, and 
legal and equitable owners, of qualified property, gross income does 
not include gain from the sale of such property to a holder of the 
leasehold right if such holder is--
            ``(1) a lessee of a residential house lot,
            ``(2) a lessee of a multi-family residential leasehold 
        unit,
            ``(3) an association of apartment owners of a multi-family 
        residential leasehold property, or
            ``(4) a cooperative housing corporation for a residential 
        leasehold property.
    ``(b) Qualified Property.--For purposes of subsection (a), the term 
`qualified property' means the leased-fee interest to any residential 
house lot or the leased-fee interest in a condominium or co-operative 
housing apartment in a multi-family residential leasehold property.
    ``(c) Other Definitions.--For purposes of subsection (b)--
            ``(1) Fee simple owner, leased-fee interest, legal and 
        equitable owners, lessee.--The terms `fee simple owner', 
        `leased-fee interest', `legal and equitable owners', and 
        `lessee' shall have the same meaning as defined in Hawaii 
        Revised Statutes Sec.