[Congressional Bills 111th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3207 Introduced in House (IH)]

111th CONGRESS
  1st Session
                                H. R. 3207

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.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             July 14, 2009

 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.

    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 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 139C the 
following new section:

``SEC. 139D. 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 section 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 
        section 514C-1.
    ``(d) Termination.--This section shall not apply to any taxable 
year beginning after December 31, 2014.''.
    (b) Clerical Amendment.--The table of sections for such part is 
amended by inserting after the item relating to section 139C the 
following new item:

``Sec. 139D. 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, 2009.
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