[Congressional Bills 111th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4839 Introduced in House (IH)]

111th CONGRESS
  2d Session
                                H. R. 4839

To amend the Internal Revenue Code of 1986 to exclude from gross income 
 contributions to the capital of a partnership, and for other purposes.


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                    IN THE HOUSE OF REPRESENTATIVES

                             March 12, 2010

    Mr. Davis of Illinois (for himself, Mr. Roskam, and Mr. Tiberi) 
 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 
 contributions to the capital of a partnership, and for other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. EXCLUSION OF CONTRIBUTIONS TO CAPITAL OF PARTNERSHIP.

    (a) In General.--Subsection (a) of section 118 of the Internal 
Revenue Code of 1986 is amended by inserting before the period at the 
end the following: ``, and, in the case of a partnership, gross income 
shall not include contributions to the capital of the partnership''.
    (b) Basis of Property Contributed to Partnership.--Section 723 of 
such Code is amended--
            (1) by striking ``The basis of property'' and inserting the 
        following:
    ``(a) In General.--Except as provided in subsection (b), the basis 
of property'', and
            (2) by adding at the end the following new subsection:
    ``(b) Contributions to Capital.--
            ``(1) Property other than money.--If property other than 
        money--
                    ``(A) is acquired by a partnership as a 
                contribution to capital, and
                    ``(B) is not contributed by a partner as such,
        then the basis of such property shall be zero.
            ``(2) Money.--If money--
                    ``(A) is received by a partnership as a 
                contribution to capital, and
                    ``(B) is not contributed by a partner as such,
        then the basis of any property acquired with such money during 
        the 12-month period beginning on the day the contribution is 
        received shall be reduced by the amount of such contribution. 
        The excess (if any) of the amount of such contribution over the 
        amount of the reduction under the preceding sentence shall be 
        applied to the reduction (as of the last day of the period 
        specified in the preceding sentence) of the basis of any other 
        property of the partnership. The particular properties to which 
        the reductions required by this paragraph shall be allocated 
        shall be determined under regulations prescribed by the 
        Secretary.''.
    (c) No Increase in Basis of Partner's Interest.--Subparagraph (B) 
of section 705(a)(1) of such Code is amended by inserting ``(other than 
amounts excluded from gross income under section 118)'' after ``exempt 
from tax under this title''.
    (d) Conforming Amendment.--The heading for section 118 of such Code 
is amended by striking ``of a corporation'' and inserting ``of 
corporations and partnerships''.
    (e) Effective Date.--The amendments made by this section shall 
apply to contributions made after the date of the enactment of this 
Act.
                                 <all>