[Congressional Bills 110th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3420 Introduced in House (IH)]







110th CONGRESS
  1st Session
                                H. R. 3420

   To amend the Internal Revenue Code of 1986 to require the use of 
 Federally insured intermediaries for nonrecognition treatment on like-
  kind exchanges involving cash to be used to acquire the replacement 
                               property.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             August 3, 2007

Ms. Zoe Lofgren of California 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 require the use of 
 Federally insured intermediaries for nonrecognition treatment on like-
  kind exchanges involving cash to be used to acquire the replacement 
                               property.

    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 ``1031 Regulation Act of 2007''.

SEC. 2. FEDERALLY INSURED INTERMEDIARIES REQUIRED FOR LIKE-KIND 
              EXCHANGES INVOLVING CASH TO BE USED TO ACQUIRE 
              REPLACEMENT PROPERTY.

    (a) In General.--Subsection (a) section 1031 of the Internal 
Revenue Code of 1986 (relating to exchange of property held for 
productive use or investment) is amended by adding at the end the 
following new paragraph:
            ``(4) Required use of federally insured intermediaries for 
        exchanges involving cash to be used to acquire replacement 
        property.--Paragraph (1) shall not apply to any exchange as 
        part of which cash is received by the taxpayer which is to be 
        used to acquire like-kind property unless such cash is at all 
        times before being so used held as a deposit in--
                    ``(A) any insured depository institution (as 
                defined in section 3 of the Federal Deposit Insurance 
                Act (12 U.S.C. 1813)), or
                    ``(B) any insured credit union (as defined in 
                section 101 of the Federal Credit Union Act (12 U.S.C. 
                1752)).''.
    (b) Effective Date.--The amendment made by this section shall apply 
to transfers after the date of the enactment of this Act in taxable 
years ending after such date.
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