[Congressional Bills 110th Congress]
[From the U.S. Government Publishing Office]
[H.R. 7269 Introduced in House (IH)]







110th CONGRESS
  2d Session
                                H. R. 7269

To amend the Internal Revenue Code of 1986 to exclude from gross income 
                 gain from the sale of troubled assets.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                            October 3, 2008

   Mr. Sali 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 from the sale of troubled assets.

    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 SALE OR EXCHANGE OF CERTAIN MORTGAGES 
              AND MORTGAGE-RELATED SECURITIES.

    (a) In General.--Part I of subchapter P of chapter 1 of the 
Internal Revenue Code of 1986 (relating to treatment of capital gains) 
is amended by adding at the end:

``SEC. 1203. EXCLUSION OF GAIN FROM SALE OR EXCHANGE OF CERTAIN 
              MORTGAGES AND MORTGAGE-RELATED SECURITIES.

    ``(a) In General.--There shall be excluded from gross income gain 
from the sale or exchange of a qualified mortgage or mortgage-related 
security held for more than 1 year.
    ``(b) Qualified Mortgage or Mortgage-Related Security.--For 
purposes of this section, the term `qualified mortgage or mortgage-
related security' means any residential or commercial mortgage (or any 
security, obligation, or other instrument which is based on or related 
to such a mortgage) which in each case--
            ``(1) was originated or issued on or before March 14, 2008, 
        and
            ``(2) was acquired by the taxpayer after the date of the 
        enactment of this section and before January 1, 2009.
    ``(c) Related Parties.--Subsection (a) shall not apply to any sale 
to, or exchange with, any person who bears a relationship to the 
taxpayer which is described in section 267(b) or 707(b).''.
    (b) Clerical Amendment.--The table of sections for part I of 
subchapter P of chapter 1 of such Code is amended by adding at the end 
the following new item:

``Sec. 1203. Gain on troubled assets.''.
    (c) Effective Date.--The amendments made by this section shall 
apply to sales and exchanges after the date of the enactment of this 
Act.
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