Songwriters Capital Gains Tax Equity Act

Songwriters Capital Gains Tax Equity Act - Amends the Internal Revenue Code to define certain self-created musical works or copyrights in musical works as capital assets eligible for capital gains tax treatment.

[Congressional Bills 109th Congress]
[From the U.S. Government Publishing Office]
[S. 1100 Introduced in Senate (IS)]







109th CONGRESS
  1st Session
                                S. 1100

  To amend the Internal Revenue Code of 1986 to provide capital gains 
           treatment for certain self-created musical works.


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                   IN THE SENATE OF THE UNITED STATES

                              May 23, 2005

   Mr. Bunning (for himself, Mr. Conrad, Mr. Hatch, Mrs. Boxer, Mr. 
  Alexander, and Mr. Durbin) introduced the following bill; which was 
          read twice and referred to the Committee on Finance

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                                 A BILL


 
  To amend the Internal Revenue Code of 1986 to provide capital gains 
           treatment for certain self-created musical works.

    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 ``Songwriters Capital Gains Tax Equity 
Act''.

SEC. 2. CAPITAL GAINS TREATMENT FOR CERTAIN SELF-CREATED MUSICAL WORKS.

    (a) In General.--Subsection (b) of section 1221 of the Internal 
Revenue Code of 1986 (relating to capital asset defined) is amended by 
redesignating paragraph (3) as paragraph (4) and by inserting after 
paragraph (2) the following new paragraph:
            ``(3) Sale or exchange of self-created musical works.--At 
        the election of the taxpayer, paragraphs (1) and (3) of 
        subsection (a) shall not apply with respect to any sale or 
        exchange of musical compositions or copyrights in musical works 
        by a taxpayer described in subsection (a)(3).''.
    (b) Limitation on Charitable Contributions.--Subparagraph (A) of 
section 170(e)(1) of the Internal Revenue Code of 1986 is amended by 
inserting ``(determined without regard to section 1221(b)(3))'' after 
``long-term capital gain''.
    (c) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after the date of the enactment of 
this Act.
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