I 111th CONGRESS 1st Session H. R. 1301 IN THE HOUSE OF REPRESENTATIVES March 4, 2009 Mr. Forbes 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 suspend the 180-day period for completion of a like-kind exchange in the case of the bankruptcy of a qualified intermediary or an exchange accommodation titleholder.

1.

Suspension of 180-day period for certain like-kind exchanges involving bankruptcy of applicable exchange facilitator

(a)

In general

Subsection (a) of section 1031 of the Internal Revenue Code of 1986 is amended by adding at the end the following new paragraph: (4)

Special rule for like-kind exchanges involving bankruptcy of applicable exchange facilitators

(A)

In general

In the case of any property— (i)which is identified to be received in the exchange, and (ii)which may not be received on any day solely by reason of an applicable exchange facilitator being a debtor in a title 11 or similar case (as defined in section 368(a)(3)(A)), such day shall not be taken into account for purposes of paragraph (3)(B), and clause (ii) thereof shall not apply with respect to such property.(B)

Applicable exchange facilitator

For purposes of this paragraph, the term applicable exchange facilitator means any person who holds property, or proceeds from the transfer of property, for the benefit of the taxpayer to facilitate an exchange which is intended to be within the provisions of this subsection. . (b)

Effective date

The amendments made by this section shall apply to transfers in taxable years ending after the date of the enactment of this Act.