Text: HF00657 Text: HF00659 Text: HF00600 - HF00699 Text: HF Index Bills and Amendments: General Index Bill History: General Index
PAG LIN
1 1 Section 1. Section 422.7, Code 2003, is amended by adding
1 2 the following new subsection:
1 3 NEW SUBSECTION. 39. Subtract the capital gain from the
1 4 following:
1 5 a. The sale of an equity investment in a business if all
1 6 of the following requirements are met:
1 7 (1) The equity investment is held for a period of thirty-
1 8 six months or more from the date of acquisition.
1 9 (2) A credit is not claimed on the investment under
1 10 section 15E.66, 422.11F, or 422.11G.
1 11 (3) The deduction under this paragraph "a" is in lieu of
1 12 any deduction under section 1202 of the Internal Revenue Code.
1 13 b. If the adjusted gross income includes income or loss
1 14 from a business operated by the taxpayer, the sale of a
1 15 building, land, or machinery and equipment used in the
1 16 operation of the business if the building, land, or machinery
1 17 and equipment are held for a period of thirty-six months or
1 18 more from the date of acquisition.
1 19 An individual may claim the capital gain deduction of a
1 20 partnership, S corporation, limited liability company, estate,
1 21 or trust electing to have the income taxed directly to the
1 22 individual. The amount claimed by the individual shall be
1 23 based upon the pro rata share of the individual's earnings of
1 24 a partnership, S corporation, limited liability company,
1 25 estate, or trust.
1 26 Sec. 2. Section 422.35, Code 2003, is amended by adding
1 27 the following new subsection:
1 28 NEW SUBSECTION. 19. Subtract the capital gain from the
1 29 following:
1 30 a. The sale of an equity investment in a business if all
1 31 of the following requirements are met:
1 32 (1) The equity investment is held for a period of thirty-
1 33 six months or more from the date of acquisition.
1 34 (2) A credit is not claimed on the investment under
1 35 subsection 12 or 13 or section 15E.66.
2 1 b. The sale of a building, land, or machinery and
2 2 equipment used in the operation of the business if the
2 3 building, land, or machinery and equipment are held for a
2 4 period of thirty-six months or more from the date of
2 5 acquisition.
2 6 Sec. 3. APPLICABILITY DATE. This Act applies to capital
2 7 investments made in or by businesses on or after January 1,
2 8 2003, for tax years ending after that date.
2 9 EXPLANATION
2 10 This bill provides for the deduction of capital gains from
2 11 the sale of equity investments in businesses and from the sale
2 12 of buildings, land, or machinery and equipment of business if
2 13 certain requirements are met. These requirements are that the
2 14 equity investment or the building, land, or machinery and
2 15 equipment are held for at least three years; and no credit or
2 16 other deduction for the capital investment or gain is allowed.
2 17 The bill applies to capital investments made in or by
2 18 businesses on or after January 1, 2003, for tax years ending
2 19 after that date.
2 20 LSB 1690HH 80
2 21 mg/pj/5.2
Text: HF00657 Text: HF00659 Text: HF00600 - HF00699 Text: HF Index Bills and Amendments: General Index Bill History: General Index
© 2003 Cornell College and League of Women Voters of Iowa
Comments about this site or page?
webmaster@legis.iowa.gov.
Please remember that the person listed above does not vote on bills. Direct all comments concerning legislation to State Legislators.
Last update: Wed Apr 2 02:30:15 CST 2003
URL: /DOCS/GA/80GA/Legislation/HF/00600/HF00658/030325.html
jhf