To amend the Internal Revenue Code of 1986 to exempt farm equipment and other property used in farming from the requirement that all gain on the sale of such property be recognized in the year of the sale.

Amends the Internal Revenue Code to exempt the installment sale of depreciable farm property from the requirement of year-of-sale gain (recapture) recognition.

[Congressional Bills 106th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2537 Introduced in House (IH)]







106th CONGRESS
  1st Session
                                H. R. 2537

To amend the Internal Revenue Code of 1986 to exempt farm equipment and 
 other property used in farming from the requirement that all gain on 
    the sale of such property be recognized in the year of the sale.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             July 15, 1999

Mr. Nethercutt 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 exempt farm equipment and 
 other property used in farming from the requirement that all gain on 
    the sale of such property be recognized in the year of the sale.

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

SECTION 1. EXEMPTION OF CERTAIN FARM PROPERTY FROM REQUIREMENT TO 
              RECOGNIZE RECAPTURE INCOME IN YEAR OF DISPOSITION.

    (a) In General.--Subsection (i) of section 453 of the Internal 
Revenue Code of 1986 is amended by adding at the end the following new 
paragraph:
            ``(3) Exemption for certain farm property.--
                    ``(A) In general.--Paragraph (1) shall not apply to 
                the sale of farm property described in subparagraph 
                (B).
                    ``(B) Farm property.--Subparagraph (A) applies to 
                property of a character subject to the allowance for 
                depreciation which is to be used in the farming 
                business (as defined in section 263A(e)(4)).''.
    (b) Effective Date.--The amendment made by this section shall apply 
to taxable years beginning after December 31, 1999.
                                 <all>