I 111th CONGRESS 1st Session H. R. 4035 IN THE HOUSE OF REPRESENTATIVES November 5, 2009 Mr. Marchant 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 allow the estate of a decedent to use the capital loss carryover of the decedent as a deduction against estate tax.

1.

Treatment of capital loss carryover as a deduction against estate tax

(a)

In general

Part IV of subchapter A of chapter 11 of the Internal Revenue Code of 1986 is amended by adding at the end the following new section:

2059.

Unused capital loss carryover

(a)

In general

For purposes of the tax imposed by section 2001, the value of the taxable estate shall be determined by deducting from the value of the gross estate an amount equal to the unused capital loss carryover of the decedent. (b)

Unused capital loss carryover

For purposes of this section, the term unused capital loss carryover means an amount equal to the capital loss carryover under section 1212(b) which would (but for the decedent’s death) be carried from the decedent’s last taxable year to a later taxable year of the decedent (or the surviving spouse of the decedent).

. (b)

Effective date

The amendments made by this section shall apply to estates of decedents dying after the date of the enactment of this Act.