Eminent Domain Tax Relief Act of 2005

Eminent Domain Tax Relief Act of 2005 - Amends the Internal Revenue Code to exclude from gross income gain from the conversion of property by reason of eminent domain.

[Congressional Bills 109th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3268 Introduced in House (IH)]






109th CONGRESS
  1st Session
                                H. R. 3268

To amend the Internal Revenue Code of 1986 to exclude from gross income 
   gain from the conversion of property by reason of eminent domain.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             July 13, 2005

Mr. Gingrey (for himself, Mr. Akin, Mr. Pitts, Ms. Hart, Ms. Foxx, Mr. 
Shadegg, Mr. Graves, and Mr. Mack) 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 exclude from gross income 
   gain from the conversion of property by reason of eminent domain.

    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 Tax Relief Act of 
2005''.

SEC. 2. EXCLUSION FROM GROSS INCOME FOR GAIN FROM DISPOSITION OF 
              PROPERTY BY REASON OF EMINENT DOMAIN.

    (a) In General.--Part III of subchapter B of chapter 1 of the 
Internal Revenue Code of 1986 (relating to items specifically excluded 
from gross income) is amended by inserting after section 139A the 
following new section:

``SEC. 139B. GAIN FROM DISPOSITION OF PROPERTY BY REASON OF EMINENT 
              DOMAIN.

    ``(a) In General.--Gross income shall not include gain from the 
conversion (or threat or imminence thereof) of property in the United 
States by reason of the exercise of eminent domain by a governmental 
unit having the power to exercise eminent domain.
    ``(b) Coordination With Other Nonrecognition Provisions.--
            ``(1) Gain.--Gain excluded under subsection (a) shall not 
        be treated as gain recognized or an amount realized for 
        purposes of sections 467, 637(d), 1033, 1245, 1250, 1252, 1254, 
        1255, and 1402.
            ``(2) Section 1231.--Section 1231 shall be applied without 
        regard to this section.
            ``(3) Holding period.--Section 1223(1) shall not apply.
    ``(c) Election not to Claim Credit.--This section shall not apply 
to a taxpayer for any taxable year if such taxpayer elects to have this 
section not apply for such taxable year. ''.
    (b) Clerical Amendment.--The table of sections for such part is 
amended by inserting after the item relating to section 139A the 
following new item:

``Sec. 139B. Gain from disposition of property by reason of eminent 
                            domain.''.
    (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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