[Congressional Bills 109th Congress]
[From the U.S. Government Publishing Office]
[S. 2077 Introduced in Senate (IS)]








109th CONGRESS
  1st Session
                                S. 2077

 To amend the Internal Revenue Code of 1986 to allow income averaging 
                     for private forest landowners.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                           November 18, 2005

 Mr. Sessions 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 allow income averaging 
                     for private forest landowners.

    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 ``Tax Relief for Private Forest 
Landowners Act of 2005''.

SEC. 2. INCOME AVERAGING FOR PRIVATE FOREST LANDOWNERS.

    (a) In General.--Section 1301 of the Internal Revenue Code of 1986 
is amended by redesignating subsection (c) as subsection (d) and by 
inserting after subsection (b) the following new subsection:
    ``(c) Treatment of Sale or Exchange of Timber.--For purposes of 
this section--
            ``(1) an individual who sells or exchanges timber shall be 
        treated as engaged in a farming business, and
            ``(2) income which is attributable to the sale or exchange 
        of timber shall be treated as income attributable to a farming 
        business.''.
    (b) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after the date of the enactment of 
this Act.
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