Eminent Domain Relief Act

Eminent Domain Relief Act - Amends the Internal Revenue Code to allow the nonrecognition of gain from the involuntary conversion (by eminent domain) of taxpayer property. Exempts such taxpayer from certain tax rules for involuntary conversions, including the requirement that the condemned property be converted into similar property within a specified two-year period.

[Congressional Bills 109th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2980 Introduced in House (IH)]






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

_______________________________________________________________________

                                 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.
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