110 HR 2613 IH: To amend the Internal Revenue Code of 1986 to exclude U.S. House of Representatives 2007-06-07 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 110th CONGRESS 1st Session H. R. 2613 IN THE HOUSE OF REPRESENTATIVES June 7, 2007 Mr. Abercrombie (for himself and Ms. Hirono) 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)an association of apartment owners of a multi-family residential leasehold property, or (2)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 this section (b)— (1)

Fee simple owner, leased-fee interest, legal and equitable owners

The terms fee simple owner, leased-fee interest, and legal and equitable owners 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, 2012.

. (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, 2007.