109th CONGRESS

1st Session

H. R. 2980

To amend the Internal Revenue Code of 1986 to provide for the nonrecognition of gain on real property which is involuntarily converted as the result of the exercise of eminent domain, without regard to whether such property is replaced.

IN THE HOUSE OF REPRESENTATIVES

June 17, 2005

Mr. TANCREDO introduced the following bill; which was referred to the Committee on Ways and Means

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A BILL

To amend the Internal Revenue Code of 1986 to provide for the nonrecognition of gain on real property which is involuntarily converted as the result of the exercise of eminent domain, without regard to whether such property is replaced.

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 `Eminent Domain Relief Act'.

SEC. 2. NONRECOGNITION TREATMENT FOR REAL PROPERTY WHICH IS INVOLUNTARILY CONVERTED AS A RESULT OF EXERCISE OF EMINENT DOMAIN.

(a) In General- Section 1033 of the Internal Revenue Code of 1986 (relating to involuntary conversions) is amended by redesignating subsection (k) as subsection (l) and by adding after subsection (j) the following new subsection:

`(k) Condemnation of Real Property- If real property held by the taxpayer is (as the result of its seizure, requisition, or condemnation, or threat or imminence thereof) compulsorily or involuntary converted, at the election of the taxpayer (in such form and manner as the Secretary may prescribe)--

`(1) no gain shall be recognized, and

`(2) subsections (a) and (b) shall not apply with respect to such conversion.'.

(b) Effective Date- The amendment made by this section shall apply to dispositions of converted property occurring after December 31, 2004.