Real Estate Investment Incentive Act of 2010 - Amends the Internal Revenue Code to reduce to 5% the rate of tax on net capital gains from the sale or exchange of depreciable real property placed in service before January 1, 2011. Defines "depreciable real property" as investment property which is part of a building with fewer than two residential rental units.
[Congressional Bills 111th Congress]
[From the U.S. Government Publishing Office]
[H.R. 5263 Introduced in House (IH)]
111th CONGRESS
2d Session
H. R. 5263
To amend the Internal Revenue Code of 1986 to provide a 5 percent
maximum rate of tax on gain from the sale or exchange of depreciable
real property by individuals.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
May 11, 2010
Mr. Yarmuth introduced the following bill; which was referred to the
Committee on Ways and Means
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A BILL
To amend the Internal Revenue Code of 1986 to provide a 5 percent
maximum rate of tax on gain from the sale or exchange of depreciable
real property by individuals.
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 ``Real Estate Investment Incentive Act
of 2010''.
SEC. 2. 5 PERCENT MAXIMUM RATE OF TAX ON DEPRECIABLE REAL PROPERTY.
(a) Regular Tax.--
(1) In general.--Subparagraph (C) of section 1(h)(1) of the
Internal Revenue Code of 1986 is amended to read as follows:
``(C) with respect to the amount of adjusted net
capital gain (or, if less, taxable income) in excess of
the amount on which a tax is determined under
subparagraph (B)--
``(i) 5 percent of the lesser of such
excess or the net depreciable 2010 real
property gain, and
``(ii) 15 percent of the remainder of such
excess (if any);''.
(2) Net depreciable 2010 real property gain.--Subsection
(h) of section 1 of such Code is amended by adding at the end
the following new paragraphs:
``(12) Net depreciable 2010 real property gain.--For
purposes of this subsection, the term `net depreciable 2010
real property gain' means the lesser of--
``(A) net capital gain determined by taking into
account only gains and losses from the sale or exchange
of depreciable real property first placed in service by
the taxpayer after the date of the enactment of this
paragraph and before January 1, 2011, or
``(B) net capital gain.
For purposes of the preceding sentence, net capital gain shall
be determined without regard to the amount of long-term capital
gain (not otherwise treated as ordinary income) which would be
treated as ordinary income if section 1250(b)(1) included all
depreciation and the applicable percentage under section
1250(a) were 100 percent.
``(13) Depreciable real property.--For purposes of this
subsection, the term `depreciable real property' means section
1250 property (as defined in section 1250(c)) other than
residential rental property which is part of a building with
fewer than 2 residential rental units.''.
(b) Minimum Tax.--Subparagraph (C) of section 55(b)(3) of such Code
is amended to read as follows:
``(C) with respect to the amount of adjusted net
capital gain (or, if less, taxable excess) in excess of
the amount on which a tax is determined under
subparagraph (B)--
``(i) 5 percent of the lesser of such
excess or the net depreciable 2010 real
property gain, and
``(ii) 15 percent of the remainder of such
excess (if any);''.
(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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Introduced in House
Introduced in House
Referred to the House Committee on Ways and Means.
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