109 HR 2476 IH: 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. U.S. House of Representatives 2005-05-19 text/xml EN Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain.

I 109th CONGRESS 1st Session H. R. 2476 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.

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:

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 §516–1. (2)

Multi-family residential leasehold property, multi-family residential leasehold unit

The terms multi-family residential leasehold property and multi-family residential leasehold unit mean property or units within a planned unit development, condominium project, or cooperative housing project, as those terms are defined in Hawaii Revised Statutes §514C–1. (d)

Termination

This section shall not apply to any taxable year beginning after December 31, 2010.

. (b)

Clerical amendment

The table of sections for such part is amended by inserting after the item relating to section 139A the following new item: Sec. 139B. Sales of certain residential leased-fee interests to holders of the leasehold rights . (c)

Effective date

The amendments made by this section shall apply to sales after December 31, 2005.