Installment Sale Protection Act of 2002

Installment Sale Protection Act of 2002 - Amends the Internal Revenue Code of 1986 to make eligible for installment reporting any intangibles recapture gain from certain sales of an interest in a service business.

[Congressional Bills 107th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4651 Introduced in House (IH)]







107th CONGRESS
  2d Session
                                H. R. 4651

 To amend the Internal Revenue Code of 1986 to provide for installment 
   reporting of certain gain from the sale of an interest in service 
                               business.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                              May 2, 2002

  Mr. Herger 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 for installment 
   reporting of certain gain from the sale of an interest in service 
                               business.

    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 ``Installment Sale Protection Act of 
2002''.

SEC. 2. INTANGIBLES RECAPTURE GAIN FROM CERTAIN SALES OF SERVICE 
              BUSINESS INTERESTS ELIGIBLE FOR INSTALLMENT REPORTING.

    (a) In General.--Section 453(i)(2) of the Internal Revenue Code of 
1986 (relating to recapture income) is amended by adding at the end the 
following sentence: ``Notwithstanding the preceding sentence, such term 
shall not include amounts attributable to any amortizable section 197 
intangible (as defined in section 197(c)) in connection with the 
disposition by an individual of an interest in a business in which 
capital is not a material income-producing factor, if such individual 
has been an active participant in such business for at least 5 of the 7 
years preceding such disposition.''.
    (b) Effective Date.--The amendment made by this section shall apply 
to sales in taxable years ending after the date of the enactment of 
this Act.
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