[Congressional Bills 111th Congress]
[From the U.S. Government Publishing Office]
[H.R. 5263 Introduced in House (IH)]

111th CONGRESS
  2d Session
                                H. R. 5263

   To amend the Internal Revenue Code of 1986 to provide a 5 percent 
 maximum rate of tax on gain from the sale or exchange of depreciable 
                     real property by individuals.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                              May 11, 2010

 Mr. Yarmuth 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 provide a 5 percent 
 maximum rate of tax on gain from the sale or exchange of depreciable 
                     real property by individuals.

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

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Real Estate Investment Incentive Act 
of 2010''.

SEC. 2. 5 PERCENT MAXIMUM RATE OF TAX ON DEPRECIABLE REAL PROPERTY.

    (a) Regular Tax.--
            (1) In general.--Subparagraph (C) of section 1(h)(1) of the 
        Internal Revenue Code of 1986 is amended to read as follows:
                    ``(C) with respect to the amount of adjusted net 
                capital gain (or, if less, taxable income) in excess of 
                the amount on which a tax is determined under 
                subparagraph (B)--
                            ``(i) 5 percent of the lesser of such 
                        excess or the net depreciable 2010 real 
                        property gain, and
                            ``(ii) 15 percent of the remainder of such 
                        excess (if any);''.
            (2) Net depreciable 2010 real property gain.--Subsection 
        (h) of section 1 of such Code is amended by adding at the end 
        the following new paragraphs:
            ``(12) Net depreciable 2010 real property gain.--For 
        purposes of this subsection, the term `net depreciable 2010 
        real property gain' means the lesser of--
                    ``(A) net capital gain determined by taking into 
                account only gains and losses from the sale or exchange 
                of depreciable real property first placed in service by 
                the taxpayer after the date of the enactment of this 
                paragraph and before January 1, 2011, or
                    ``(B) net capital gain.
        For purposes of the preceding sentence, net capital gain shall 
        be determined without regard to the amount of long-term capital 
        gain (not otherwise treated as ordinary income) which would be 
        treated as ordinary income if section 1250(b)(1) included all 
        depreciation and the applicable percentage under section 
        1250(a) were 100 percent.
            ``(13) Depreciable real property.--For purposes of this 
        subsection, the term `depreciable real property' means section 
        1250 property (as defined in section 1250(c)) other than 
        residential rental property which is part of a building with 
        fewer than 2 residential rental units.''.
    (b) Minimum Tax.--Subparagraph (C) of section 55(b)(3) of such Code 
is amended to read as follows:
                    ``(C) with respect to the amount of adjusted net 
                capital gain (or, if less, taxable excess) in excess of 
                the amount on which a tax is determined under 
                subparagraph (B)--
                            ``(i) 5 percent of the lesser of such 
                        excess or the net depreciable 2010 real 
                        property gain, and
                            ``(ii) 15 percent of the remainder of such 
                        excess (if any);''.
    (c) Effective Date.--The amendments made by this section shall 
apply to taxable years ending after the date of the enactment of this 
Act.
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